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.
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