SEC issues new rules against abusive short sales

September 17, 2008 by · Leave a Comment
Filed under: Legal News 

I am glad to see they are applying these rules to all companies not just a hand-picked bunch of financial and GSE’s. Abusive naked short selling has been effecting many companies over the years while the SEC had rules on the books about this but the enforced never came so it gave these short-sellers a “green light” to use these manipulative techniques.

Reuters Release:

New rules aimed against abusive naked short selling of stock in all publicly traded companies were issued by the U.S. Securities and Exchange Commission on Wednesday.

The SEC’s new rules, which include a requirement to deliver a security by the settlement date, are effective on Thursday.

Read more