2026-04149NoticeWallet

SEC Keeps Stock Stabilizers in Check: More Paperwork Ahead?

Published Date: 3/3/2026

Notice

Summary

The SEC is asking for comments on keeping Rule 104, which helps keep stock offerings fair by requiring certain disclosures about stabilizing bids. About 634 companies spend a little time and money each year to follow this rule, and the SEC wants to make sure the process stays clear and useful. If you’re involved in stock offerings, this affects you and your paperwork!

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Mandatory Stabilizing Bid Disclosures

If you are a distribution participant or syndicate manager in a stock offering, Rule 104 requires you to disclose potential stabilizing transactions in offering materials and to inform the market when a stabilizing bid is made. The rule also requires you to maintain information on syndicate covering transactions and penalty bids and disclose that information to the Self‑Regulatory Organization (SRO), which means investors and the market will see these disclosures.

Paperwork Burden and Compliance Cost

The SEC estimates about 634 respondents per year must comply with Rule 104, with each respondent making 1 annual response that takes about 0.20 hours (12 minutes). The total annual hour burden is approximately 127 hours and the SEC estimates total internal labor cost of compliance at about $20,828 per year, or roughly $32.85 per respondent per response.

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Key Dates

Published Date
3/3/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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