On May 8, 2017, the NYSE MKT issued a proposed rule change to harmonize its periodic reporting requirements with those of the NYSE. Currently, the NYSE MKT provides companies that are late in making required filings with a compliance plan under its general provisions for companies that are non-compliant with NYSE rules, as set forth in Section 1009 of the NYSE MKT Company Guide. Section 1009 gives the NYSE MKT the discretion to grant companies up to 18 months to cure events of noncompliance and does not provide specific guidance with respect to how compliance periods should be administered for companies late in submitting their filings. In contrast, Section 802.01E of the NYSE Listed Company Manual limits companies to a maximum cure period of 12 months to submit all delayed filings and includes specific provisions for determining how much time companies should be given to cure within the context of that maximum 12 months and what is required to be eligible for that additional time. The proposed rule change also harmonizes NYSE MKT requirements with respect to semi-annual reporting by foreign private issuers with that of the NYSE. The NYSE MKT noted that a consistent approach among the two sister exchanges will avoid confusion among investors and companies and their service providers about the applicable rules.
A copy of the proposed rule change is available at: https://www.sec.gov/rules/sro/nysemkt/2017/34-80619.pdf.
Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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