SEC Adopts Amendments to Regulation SHO to Restrict Short Selling | White & Case LLP International Law Firm, Global Law Practice
SEC Adopts Amendments to Regulation SHO to Restrict Short Selling

SEC Adopts Amendments to Regulation SHO to Restrict Short Selling

On February 24, 2010, the US Securities and Exchange Commission adopted amendments to Regulation SHO to restrict short sales of stocks experiencing significant downward price pressure. New Rule 201 combines the "circuit breaker" and "alternative uptick" approaches the SEC previously proposed and prohibits short sales of a security if the price of such security declines by ten percent or more from the previous day's closing price, except at a price above the current national best bid. The rule, which includes a number of exemptions from the short sale restrictions, applies to all securities, except options, listed on a national securities exchange. Compliance with Rule 201 is required starting on November 10, 2010.

Click here to download PDF.

 

This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
© 2010 White & Case LLP