NEW YORK: In the face of widespread criticism, the New York Stock Exchange (NYSE) has dropped a plan to forbid stock analysts from being interviewed by media outlets that fail to reveal the analysts' potential conflicts of interest.
Arguing that it violated the First Amendment, a slew of news organizations and others protested the proposed SEC rule, which grew out of an effort to comply with a wide-ranging regulatory push designed to bring transparency to the financial marketplace.
The Big Board agreed in part with the news organizations' Constitutional claims, but is still requiring stock and bond analysts to disclose conflicts. The difference between the revised plan and the original is that the analysts will not be punished if reporters choose not to publish those disclosures.
"We're gratified that the New York Stock Exchange has responded to the media's concerns and will leave us free to make our own editorial judgments as we cover these important markets," said Dow Jones spokeswoman Brigitte Trafford.
The NYSE came under fire for another recent media relations move when it banned reporters from Arab news channel Al Jazeera from the trading floor. Recently, it has shown signs of wavering on that stance.
"We've met with them, and the meeting was constructive," said spokeswoman, Diana De Socio. She added that another meeting was in the works.