|
|
Article: SEC Issues Emergency Order On Short-Selling.(Securities and Exchange Commission )
- Article from:
- Mondaq Business Briefing
- Article date:
- August 4, 2008
|
Copyright informationCOPYRIGHT 2008 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
On July 15, 2008, the Securities and Exchange Commission (the "SEC") issued an emergency order restricting the use of "naked" short sales in the securities of nineteen major financial institutions. The SEC's order came in the wake of increased disclosure requirements implemented by the Financial Services Authority in England (the "FSA"). The FSA mandated that any trader short-selling 0.25% or more of a company's securities during a rights issuance disclose its position to the public.
While the new English regulations primarily affect the transparency of financial activities, the SEC's emergency order impacts the actual mechanics of short-selling. The order states ...