SEC Proposes Amendments to Rule 10b-18 Safe Harbor for Issuer Share Repurchases
On January 26, 2010, the Securities and Exchange Commission (“SEC”) proposed amendments to Rule 10b-18 under the Securities Exchange Act of 1934. Rule 10b-18 provides a non-exclusive safe harbor from liability under the anti-manipulation provisions of the Exchange Act, including Rule 10b-5, when an issuer repurchases shares of its common stock in conformity with the conditions of the Rule regarding the manner, price, volume and timing of such purchases. The SEC’s proposed amendments to Rule 10b-18 are intended to clarify and modernize the Rule in light of recent market developments.