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 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.