Wednesday, June 13, 2007 5:14:42 PM
SEC Votes To End Short-Selling 'Grandfather' Protections
June 13, 2007 11:23 ET
By Judith Burns
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Securities and Exchange Commission voted Wednesday to
approve a change to tighten rules intended to curb manipulative short sales,
including so-called "naked" short sales.
The change eliminates a controversial exception that shielded existing short
positions from requirements to deliver hard-to-borrow shares within 13 days of
settlement. Once the change takes effect, short positions previously protected by
the grandfather clause must be closed out within 35 days.
SEC Chairman Christopher Cox said persistent failures to deliver shares sold
short seem to be due to the grandfather protections, which the SEC included in
2004 to prevent stock-market volatility. Critics complained the protections
undermined efforts to clean up abuses involving "naked" short sales.
Short selling involves sales of borrowed securities, producing profits when
prices decline. The practice is legal, but the SEC's Regulation SHO sought to
prevent "naked" short sales, in which short sellers don't borrow securities they
sell.
SEC officials said delivery failures have declined about 35% overall since
Regulation SHO took effect and have fallen about 53% for hard-to-borrow stocks
defined as "threshold" securities.
-By Judith Burns, Dow Jones Newswires, 202-862-6692; Judith.Burns@dowjones.com
(END) Dow Jones Newswires
The POWER of the Internet. Like the Six Gun in the Old West called an Equalizer.
Do your own DD, This post is my OPINION. ** TRUST, BUT VERIFY.**VERIFY
ECGI Holdings Announces LOI to Acquire Pacific Saddlery to Capitalize on $12.72 Billion Market Potential • ECGI • Jun 13, 2024 9:50 AM
Fifty 1 Labs, Inc. Announces Major Strategic Advancements and Shareholder Updates • CAFI • Jun 13, 2024 8:45 AM
Snakes & Lattes Opens Pop-Up Location at The Wellington Market in Toronto: A New Destination for Fun and Games - Thanks 'The Well', PepsiCo, Indie Pale House & All Sponsors & Partners for Their Commitment & Assistance Throughout The Process • FUNN • Jun 13, 2024 8:18 AM
HealthLynked Introduces Innovative Online Medical Record Request Form Using DocuSign • HLYK • Jun 12, 2024 8:00 AM
Ubiquitech Software Corp (OTC:UBQU) Posts $624,585 Quarterly Revenue - Largest Quarter Since 2018 • UBQU • Jun 11, 2024 10:13 AM
Element79 Gold Corp Files for OTCQB Uplisting, Provides Financial Update • ELEM • Jun 11, 2024 9:25 AM