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NASDAQ’s News Notification Rule

It seemed a little confusing at first glance.  But the second time around, it’s clear that not much has changed with NASDAQ’s recently issued updated news reporting notification rule, and most NASDAQ-traded companies likely already comply.
 
In a nutshell, it states that NASDAQ-listed companies must submit material news announcements to the NASDAQ MarketWatch Department prior to 6:50 a.m. ET when the public release of the material news is made outside of NASDAQ market hours—7 a.m. ET to 8 p.m. ET.
 
There is no change to the notification requirements of least 10 minutes prior to public release of material news disclosures made public during NASDAQ market hours.  Such notifications must be made through the electronic disclosure submission system available at www.nasdaq.net, except in emergency situations.
 
In simpler terms, if you plan to issue a news release between 7 a.m. and 8 p.m. ET, you must provide at least 10-minutes advance notice; if you plan to issue a news release after 8 p.m. but before 7 a.m. ET, you need to provide notice no later than 6:50 a.m. ET, which is 10 minutes before the market opens. If you plan to issue a news release on a weekend or market holiday, you need to let NASDAQ know no later than 6:50 a.m. of the next market day.
 
And as a friendly reminder, if an 8K is the only form of disclosure—which we rarely recommend—the same NASDAQ notification rules apply.
 
NASDAQ said the rule change, which went effective February 19, removes a burden on listed-companies, while continuing to enable NASDAQ to conduct timely reviews of company disclosures and make materiality assessments for possible trading halts.

 

Roger Pondel, rpondel@pondel.com