28 Apr 2009, David Benyon, Operational Risk & Regulation
WASHINGTON, DC - The US Securities and Exchange Commission (SEC) plans to hold a roundtable discussion to debate the way forward for short-selling regulation.
The decision follows an April 8 vote by which the SEC decided unanimously to start public consultation on two very different approaches to short selling - without plumping for either one.
The first approach is a permanent and market-wide strategy to introduce an 'up-tick rule', with a price test based on the national test bid or last sale price.
The second strategy would be temporary and restricted to securities, including either a 'circuit breaker' banning shorting of a particular stock one day at a time, or imposing a short sale price test based on last sale price or national best bid, if a specific security goes into market freefall.
"This roundtable will help ensure that any policy decisions going forward in the area of short-selling regulations are the product of a highly deliberate review process," says Mary Schapiro, chairman of the SEC.
The SEC said the roundtable event will include self-regulatory organisations, exchanges and trading infrastructures, academics, and financial and investment industry representatives.
The roundtable will take place on May 5 at 10.00am EST at the regulator's Washington, DC offices, and will be webcast on the SEC website.
The agenda may be read here.
© Incisive Media Investments Limited 2013, Published by Incisive Financial Publishing Limited, Haymarket House, 28-29 Haymarket, London SW1Y 4RX, are companies registered in England and Wales with company registration numbers 04252091 & 04252093