Wednesday, April 08, 2009 11:09:17 AM
SEC Discusses Short Sale Restrictions
Wed Apr 8 11:00:00 EDT 2009 | Briefing.com
The Securities Exchange Commission is currently holding an open meeting to discuss possible short sale restrictions. The first recommended approache to regulate short selling uses a short sale price test approach, while the second uses circuit breakers.
Price tests could use a modified uptick rule that requires short sales to not take place at prices below the national best bid, or possibly a proposed uptick rule based on the last sale price rather than the national best bid.
As for circuit breakers, these breakers would only apply to securities facing substantial declines. Breaker proposals could prohibit short selling for remainder of the day after a 10% decline in a security; a circuit breaker triggered by 10% decline could enforce a price test rule based on the best bid, and; a circuit breaker triggered by 10% decline could enforce a price test rule based on the last sale price.
Meanwhile, stocks seem to be looking for direction after early gains were challenged by a bout of selling pressure. All three of the major indices are back in positive territory, though.
Got a SHOTGUN for that "SHORT MUTT" >>FAZ
Regards,
Knight_78
Wed Apr 8 11:00:00 EDT 2009 | Briefing.com
The Securities Exchange Commission is currently holding an open meeting to discuss possible short sale restrictions. The first recommended approache to regulate short selling uses a short sale price test approach, while the second uses circuit breakers.
Price tests could use a modified uptick rule that requires short sales to not take place at prices below the national best bid, or possibly a proposed uptick rule based on the last sale price rather than the national best bid.
As for circuit breakers, these breakers would only apply to securities facing substantial declines. Breaker proposals could prohibit short selling for remainder of the day after a 10% decline in a security; a circuit breaker triggered by 10% decline could enforce a price test rule based on the best bid, and; a circuit breaker triggered by 10% decline could enforce a price test rule based on the last sale price.
Meanwhile, stocks seem to be looking for direction after early gains were challenged by a bout of selling pressure. All three of the major indices are back in positive territory, though.
Got a SHOTGUN for that "SHORT MUTT" >>FAZ
Regards,
Knight_78
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