NEW YORK--(SEC's Interpretive Guidance release on web-based disclosure clearly falls short of the investor relations industry's best practices standards, and that simultaneous, real-time distribution of material news to all market participants is the key to ensuring the "level playing field" that is the intent and spirit of Regulation Fair Disclosure.)--Business Wire believes that the
“Corporate websites, RSS feeds, and blogs are all valuable adjuncts to the disclosure process, and are tools that all issuers should take advantage of to promote interactive investor communications”
While Business Wire agrees with the SEC that the Internet provides a valuable and effective platform to enhance investor communications, the evidence confirms that web-only disclosure fails the Reg FD litmus test given its demonstrable incapability of achieving simultaneity, true investor equality and fairness in today's milli-second trading environment.
Rather than creating a scenario that invites issuer confusion with regard to regulatory compliance standards, increased information fragmentation, and widespread disparities in terms of investor access, Business Wire strongly believes that today's proven disclosure model, which provides free and unrestricted access to the entire investment community simultaneously and in real-time, should remain the backbone of public disclosure fulfillment. Equally important, there is a clear audit trail, as well as a permanent publicly available archive, of all corporate announcements for future reference purposes.
In the way of background, Business Wire was awarded a U.S. patent in June 2006 for its proprietary "NX" Internet-based technology, recognized by the Patent Office for its simultaneous news distribution capabilities. Business Wire's platform ensures sub-second delivery to all network recipients worldwide, meaning that all investors have equal and unrestricted access to market-moving news, regardless if they are accessing Business Wire via popular portals, or via premium-priced desktop terminals. Business Wire's NX multilingual platform transmits in 17 languages, creating the opportunity for interlisted companies to meet disclosure in multiple jurisdictions simultaneously. Additionally, it is XBRL-compatible, poised to deliver interactive data, endorsed by the SEC itself, to a global audience.
Furthermore, Business Wire pioneered the delivery of financial tables in XHTML, a transmission format that allows for a visually appealing online data display, providing improved searchability, greater user flexibility, and the ability to transmit to diverse media applications, including cellphones and PDAs.
"Corporate websites, RSS feeds, and blogs are all valuable adjuncts to the disclosure process, and are tools that all issuers should take advantage of to promote interactive investor communications," said Cathy Baron Tamraz, Business Wire's president and CEO. "Business Wire currently has the capability of simultaneously posting to issuer websites releases transmitted over its disclosure network. RSS feeds also are an integral part of our total disclosure solution--available at no charge to all investors, who simply need to register. The shortcomings of RSS feeds and corporate blogs as standalone disclosure options have been widely documented, and are clearly not a substitute for the broad-based, simultaneous, and real-time disclosure that is at the heart of Reg FD."
About Business Wire
Business Wire, a Berkshire Hathaway company, is utilized by thousands of member companies and organizations to transmit their full-text news releases, regulatory filings, photos and other multimedia content to journalists, news media, trade publications, institutional and individual investors, financial information services, regulatory authorities, Internet portals, information websites, business-to-business decision-makers and consumers worldwide. With a news distribution network spanning 150 countries and 45 languages, Business Wire's multi-channel delivery network has access to dozens of international and national news agency networks throughout the Americas, Europe, Asia, the Middle East and Africa.
The Business Wire news network is powered by its patented NX high-speed data platform and supports XML, XHTML and XBRL code to deliver the most sophisticated news file to enhance news release interactivity, customization and search engine optimization. Business Wire has 31 bureaus in cities including New York, San Francisco, Los Angeles, Chicago, Boston, Miami, Paris, Frankfurt, London, Brussels, Tokyo, Toronto and Sydney with reciprocal offices throughout the world. Business Wire was founded in 1961.
KEYWORDS: Berkshire Hathaway Blogs Business Wire Disclosure RSS Feeds Reg FD Regulation Fair Disclosure SEC XHTML