On June 5, 2023, the New York Stock Exchange (NYSE) filed Amendment No. 1 to its proposed listing standard related to the Securities and Exchange Commission’s (SEC) Rule 10D-1 (the “Clawback Rule”), extending the effective date to October 2, 2023. On June 6, 2023, The Nasdaq Stock Market LLC (Nasdaq) also filed Amendment No. 1 to its proposed clawback listing standard, delaying the effective date until October 2, 2023.

As discussed in our previous blog posts, the Clawback Rule required U.S. stock exchanges to adopt listing standards in compliance with the Clawback Rule. In February, NYSE and Nasdaq filed proposals to adopt listing standards related to the Clawback Rules with a deadline of April 27, 2023 for the SEC to take action. On April 24, 2023, the SEC extended the period to consider the proposed listing standards, with an approval or disapproval date of June 11, 2023.

If the NYSE and Nasdaq Clawback Rule standards are approved by the SEC in October, issuers will have until December 1, 2023 to adopt clawback policies compliant with the Clawback Rule. We will continue to monitor the rule and provide updates on the SEC’s approval or disapproval of the listing standards.