SEC Proposes Naked Short Selling Anti-Fraud Rule - sec proposes naked short selling anti-fraud rule

Category

sec proposes naked short selling anti-fraud rule - Naked short selling - Conservapedia


SEC Proposes Naked Short Selling Anti-Fraud Rule FOR IMMEDIATE RELEASE 2008-38. proposed to take additional steps to better safeguard investors and protect the integrity of the markets during short selling transactions by proposing a rule that would specify that abusive "naked" short selling is a fraud. Comments on "Naked" Short Selling Anti-Fraud Rule [Release No. 34-57511; File No. S7-08-08] Comments have been received from individuals and entities using the following Letter Type A: 6.

SEC PROPOSES “NAKED” SHORT SELLING ANTIFRAUD RULE On March 17, 2008, the Securities and Exchange Commission (the “SEC”) proposed a new antifraud rule, Rule 10b-21, under the Securities Exchange Act of 1934 (the “Exchange Act”) to address failures to deliver securities in settlement of securities trades, with a particular focus on. Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver" ("FTD").

The Securities and Exchange Commission has proposed to take additional steps to better safeguard investors and protect the integrity of the markets during short selling transactions by proposing a rule that would specify that abusive "naked" short selling is a fraud. Naked short selling, or naked shorting, is the practice of selling a stock short without first borrowing the shares or ensuring that the shares can be borrowed. It has been illegal in the United States since 1934, with an exemption for bona-fide market makers intended to increase liquidity and stabilize markets. In 2004, the Securities and Exchange Commission (SEC) issued "Regulation SHO.