Regulatory update Industry supports SEC rule to end naked short selling
Washington, DC -- The securities industry has decided to support a Securities and Exchange Commission (SEC) proposal that would require short sellers in all equity securities to locate securities to borrow before selling, in the hope of stemming the abusive practice of " short selling.
In October 2003, the SEC proposed a rule to overhaul the short-selling regulations in order to end industry abuses by introducing the New Regulation SHO, which would, among other things, reduce delivery and settlement failures among short sellers of equity securities.
Short selling occurs when an investor sells a security he does not own with an intention to buy it back at a lower price in order
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