SEC extends short-sale disclosure order for added transparency

October 15, 2008 by · Leave a Comment
Filed under: Legal News 

I would like to see naked shorting stopped and enforced and if we can do it without forcing market participates to disclose their transaction data then I am for that as well.  Naked shorting seems to be the problem in manipulating companies without actually obtaining the shares to go short.  

Release:

On Wednesday the SEC said the short sale reports will supply the agency with important information about the size and change in short sales in particular companies by particular investors.

“We are concerned by sudden and excessive fluctuation of securities prices and disruptions in the fair and orderly functioning of the securities markets,” the SEC said.

The SEC said it was also concerned about possible unnecessary or artificial price movements that may be based on unfounded rumors and may be exacerbated by short selling.

Under the emergency order issued in September, money managers were required to list their largest intraday short positions and when they held them, and also disclose their short positions at the end of the day.

The SEC modified the order so that investors will no longer be required to disclose the value of the securities sold short, the largest the largest intraday short position and the time of day of the largest intraday short positions.

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