TUESDAY 21 APR 2009 2:23 PM


The two largest US stock exchanges are to make disclosure requirements less onerous for listed companies.

The New York Stock Exchange (NYSE) and Nasdaq plan to revoke rules requiring companies to issue press releases when disclosing important information.

The NYSE has filed a proposed rule change which will permit listed companies to comply with its immediate release policy by disseminating the information by any Regulation FD-compliant method: these include using advisory releases and posting information on their websites or in blogs.

Although it continues to encourage companies to issue press releases, the NYSE says it is making the change to align its rules with Regulation FD and those of Nasdaq, and to meet the demands of listed companies. The new rules would also apply to international companies listed on NYSE, despite the fact they are exempt from Regulation FD.

Nasdaq already recognises any Regulration FD-compliant method of disclosure but references to press releases still remain in its rule book. It now plans to fully update the rules – removing references to press release requirements – to reflect the SEC’s recognition that standalone website postings can meet Regulation FD.

It is not clear when the rule changes will come into effect.