The New York Stock Exchange is set to stop companies from sending out press releases for up to five minutes after closing. A new rule will require the exchange to give a written explanation of why it stopped releasing information about stock prices before closing on Friday. This news blackout is intended to protect closing auctions, which establish the close-of-trade prices of thousands of stocks listed on the exchange, and deal with the problem of "significant investor confusion" and volatility surges.
The New York Stock Exchange is set to stop companies from sending out press releases for up to five minutes after closing. By doing so, it aims to hinder the high-tech trading algorithms that scan text in order to locate signals to buy or sell stocks. This news blackout is intended to protect closing auctions, which establish the close-of-trade prices of thousands of stocks listed on the exchange, and deal with the problem of "significant investor confusion" and volatility surges.