SEC to Examine Short Sales

Last year we discussed the SEC’s ban on short sales and the implementation of the new Form-SH.  Next week the SEC will be considering modifications to the short sales rules.  The press release is below and we will continue to bring updated information on this issue.


SEC to Hold Roundtable on May 5 to Examine Short Sale Price Test and Circuit Breaker Restrictions


Washington, D.C., April 24, 2009 — The Securities and Exchange Commission will hold a roundtable on May 5 beginning at 10 a.m. ET to further discuss whether short sale price test restrictions or short sale circuit breakers should be adopted.

The Commission voted unanimously on April 8 to propose two approaches to restrictions on short selling. If adopted, the price test approach would apply on a permanent market-wide basis, and the circuit breaker approach would apply to a particular security during severe market declines in the price of that security.

“This roundtable will help ensure that any policy decisions going forward in the area of short selling regulation are the product of a highly deliberate review process,” said SEC Chairman Mary L. Schapiro.
Roundtable participants will include leaders from self-regulatory organizations, trading venues, the financial services industry, investment firms, and the academic community. The final agenda and list of panelists will be announced at a later date.

The roundtable will be held in the auditorium at the SEC’s headquarters at 100 F Street, N.E., in Washington, D.C. The roundtable will be open to the public with seating on a first-come, first-served basis. The roundtable also will be webcast on the SEC Web site.

For additional information about the roundtable, contact the SEC’s Division of Trading and Markets at (202) 551-5720.

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Preliminary Agenda for Short Sale Restrictions Roundtable

May 5, 2009
U.S. Securities and Exchange Commission
100 F St., N.E.
Washington, D.C. 20549

Format: Chairman and Commissioners will question several panelists
(with a staff member facilitator).
Welcome from the Chairman
10:00 a.m. – 10:10 a.m.
Panel 1
10:10 a.m. – 11:20 a.m.
Market Changes and Investor Confidence; Are short sale price tests or short sale circuit breakers necessary or effective?
11:20 a.m. – 11:30 a.m.
Panel 2
11:30 a.m. – 12:45 p.m.
Bid versus Tick versus Circuit Breakers; Discussion of short sale price tests and views on short sale circuit breakers.
12: 45 p.m. – 1:45 p.m.
Panel 3
1:45 p.m. – 3:00 p.m.
Lessons and Insights from Empirical Data; Short sale price tests and short sale circuit breakers by the numbers.
Closing Remarks
3:00 p.m. – 3:15 p.m.

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