A blog on financial markets and their regulation
Twitter or Newswires: Are regulators behind the curve?
October 13, 2015Posted by on
Last week, I read two stories that made me wonder how regulators are far behind the curve when it comes to new media.
First, Business Insider reported that after the newswire hacking scandal (which I blogged about last month), Goldman Sachs was considering announcing its earnings on Twitter instead of on the newswires. Of course, such reports are often speculative and nothing may come of it, but it indicates that at least some organizations are taking the new media seriously.
Currently, section 202.06(C) … on the best way to release material news … is outdated as it refers to, among other things, the release of news by telephone, facsimile or hand delivery. Instead, the Exchange proposes … that listed companies releasing material news should either (i) include the news in a Form 8-K or other Commission filing, or (ii) issue the news in a press release to the major news wire services.
The regulators have finally decided to shift from obsolete media to the old media; the new media is not even on the horizon.