SEC Extends Emergency Order 5 Days for Issuer Stock Repurchases

The Nasdaq Stock Market wants to alert listed companies that the SEC has extended by 5 business days its temporary Emergency Order that significantly expands the SEC's 10b-18 safe harbor for companies executing trades under these plans. This emergency relief will now continue through Friday, September 28. Companies that do not have repurchase programs in place may wish to consult with their counsel as to appropriate corporate action to implement such plans.

As a reference, details of the temporary relief are summarized here:

• Lifting of time restrictions - Repurchases will be allowed throughout the day, including at the market open and within the last 1/2 hour of the trading day.
• Increasing volume limits to up to 100% of average daily volume, (up from 25%). Block transactions, which are specifically defined in the rule, do not count against volume limits.
• Additionally, repurchases occurring during companies' end of quarter or "blackout" periods will not by themselves be considered as any indication of a violation of the securities laws.