Alerts

Nasdaq Modifies Advance Notification Requirement

Ten Minutes Advance Notice of Material Information Now Required

December 9, 2009

In the last few days, Nasdaq has amended its advance notification requirement. Under Nasdaq Rule 5250 (the "Rule") and IM-5250-1, a listed company is required to provide Nasdaq with advance notice when publicly releasing material information that would reasonably be expected to affect the value of the company’s securities or influence investors’ decisions. Prior to the amendment, the Rule recommended, but did not require, that a listed company provide Nasdaq with at least ten minutes prior notification when releasing material information. Under the amended Rule, the ten-minute advance notification requirement is now mandatory. Notification must be made to the MarketWatch Department through Nasdaq's electronic disclosure submission system, except in an emergency, when notification by telephone or facsimile is also acceptable.