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SEC issues new rules against abusive naked short-selling

By Robert Schroeder
Last update: 9:58 a.m. EDT Sept. 17, 2008
WASHINGTON (MarketWatch) -- U.S. securities regulators issued new rules Wednesday designed to protect investors against so-called "naked" short-selling, including requiring short sellers to deliver securities by the close of business on the settlement date and making clear that those lying about their ability or intention to deliver on time are breaking the law. "These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling," said Securities and Exchange Commission Chairman Christopher Cox. Cox was criticized by Senate Banking Committee Chairman Christopher Dodd on Tuesday for not doing more to prevent abusive naked short selling.