SEC to allow rule barring "naked" shorting to expire

08/11/2008 | Financial Times (free content) · Reuters

The SEC's emergency move it said protected shares of 19 financial companies from aggressive short-selling expires Tuesday. The SEC says it will not extend the rule until new proposals against abusive short-selling across all U.S. markets take effect, a gap of at least two months. The rule against "naked" short-selling slowed down trading because traders had to borrow shares before shorting the 19 companies, which included mortgage groups Fannie Mae and Freddie Mac and Wall Street investment banks such as Lehman Bros. "We will go back to the world as it was the day before Cox testified that the emergency order was coming," said SIFMA spokesman Travis Larson.

View Full Article in:

Financial Times (free content) · Reuters

Published in Brief: