Feeds

Sun chief wants to blog his news to financial markets

Makes plea to SEC chairman

Beginner's guide to SSL certificates

The chief executive of Sun Microsystems wants to be able to announce the $11bn company's results on his blog. Jonathan Schwarz has written to the chairman of US financial regulator the Securities and Exchange Commission to request a rule change.

The SEC tightly controls how publicly quoted companies can announce information that could affect their share prices. The regulator must ensure that no investor or potential investor has access to information earlier than any other. Current rules dictate that information can be made public by a press release or by a telephone conference call, but not simply on a website.

"A couple [of] years ago, when I first started blogging, I and our illustrious general counsel were far less worried about what I was saying than where I was saying it," wrote Schwarz on his blog. "For example, I couldn't use my blog to announce our quarterly performance, or disclose a material transaction. I had to use a press release, or a conference call with a telephone operator, no less!"

Schwarz has written to SEC chairman Christopher Cox asking for the rules to be changed. "Our corporate website (www.sun.com) currently receives on (sic) average of nearly a million hits per day," wrote Schwarz. "This website is a tremendous vehicle for the broad delivery of timely and robust information about our company. It is our view that proprietary news outlets are insufficiently accessible to the broad majority of internet users and individual shareholders.

"It is certainly the case that the internet represents a broader user base than those able to afford subscriptions to traditional forms of media and thus usage of this or any other freely available company blog or web site should be considered sufficient in satisfying the objectives of Regulation Fair Disclosure," wrote Schwarz.

Regulation Fair Disclosure is the set of rules governing the release of information from listed companies. Schwarz is confident of a sympathetic hearing from Cox. "Now we happen to have a like-minded chairman at the SEC," he wrote in his blog. "We've had enough interaction with the chairman (and read enough of his writings) to know he understands the utility of the internet to inform investors - but until we see a formal revision or clarification to FD, we'll still be limiting what we disclose via blogs and the internet. And consuming trees with press releases. Which can't, in the long run, be all that desirable."

The SEC has said that using the internet to communicate is not against its rules, which do not specify or rule out any medium, but that any platform must be "broad and non-exclusionary".

See: Schwarz's blog and letter

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.