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. 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.