SEC to consider new short sale curbs next week
Reuters
On Friday February 19, 2010, 3:44 pm
WASHINGTON (Reuters) - Securities regulators will consider
new short sale restrictions at an open meeting next week, a person
familiar with regulators' plans said on Friday.
The Securities and Exchange Commission is expected to meet on
Wednesday to vote on rules that would restrict short selling in a
company's stock if that stock fell by more than a certain
percentage such as 10 percent, another person familiar with the SEC
plan said.
The SEC proposed a number of measures last year to rein in
short selling, where investors bet the stock's price will fall.
Lawmakers and bank executives blamed short selling for
contributing to the downfall of now-defunct investment banks Lehman
Brothers and Bear Stearns.
The agency proposed restrictions that would apply across
equity markets as well as curbs that would only apply if a stock
fell precipitously.
The SEC is expected to consider a "circuit breaker" measure
that would trigger a so-called passive bid test, which would only
allow short selling above the national best bid, one of the sources
said. The sources requested anonymity because the meeting has not
been made public.
Short Sale Restrictions Coming?
Posted by sethbru on 19th of Feb 2010 at 04:09 pm
SEC to consider new short sale curbs next week
Reuters
On Friday February 19, 2010, 3:44 pm
WASHINGTON (Reuters) - Securities regulators will consider new short sale restrictions at an open meeting next week, a person familiar with regulators' plans said on Friday.
The Securities and Exchange Commission is expected to meet on Wednesday to vote on rules that would restrict short selling in a company's stock if that stock fell by more than a certain percentage such as 10 percent, another person familiar with the SEC plan said.
The SEC proposed a number of measures last year to rein in short selling, where investors bet the stock's price will fall.
Lawmakers and bank executives blamed short selling for contributing to the downfall of now-defunct investment banks Lehman Brothers and Bear Stearns.
The agency proposed restrictions that would apply across equity markets as well as curbs that would only apply if a stock fell precipitously.
The SEC is expected to consider a "circuit breaker" measure that would trigger a so-called passive bid test, which would only allow short selling above the national best bid, one of the sources said. The sources requested anonymity because the meeting has not been made public.
Expect this uptrend to continue
Posted by junkie on 19th of Feb 2010 at 04:24 pm
Expect this uptrend to continue into Wednesday then!