Steve Davidoff, the NYT's Deal Professor, presents yet another defense of SOX against the mounting evidence of its negative effects on US markets. The article's hook is an anecdote about Syms' attempt to "go dark" – that is, deregister from the Securities Exchange Act of 1934 and then trade without having to comply with SOX. (As Davidoff points out, firms can fall under the minimum number of record holders to have to register while still having a significant number of actual shareholders whose shares are held by nominees.)
Syms said its reason for deregistering was to avoid the costs of complying with SOX, estimating "direct recurring annual savings will exceed $750,000." However, a group of shareholders protested that this action would harm shareholders.
See full Article.
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