Besieged by fast-trading robots, the floor traders at the New York Stock Exchange are getting a little help: an exchange-imposed news embargo for listed companies in the minutes after the market’s 4 p.m. close. The NYSE, a unit of Intercontinental Exchange Inc., plans to prevent firms from issuing news releases for up to five minutes after closing time, according to a regulatory notice that came out this week. The move is a...
The New York Stock Exchange is set to stop companies from sending out press releases for 4 p.m. 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.