SEC rule cuts short selling activity

A US Securities and Exchange Commission (SEC) ban on naked shorting of the major banks and mortgage companies has sharply reduced short sales on the targeted stocks, according to market data.

The ban was brought in on July 21 to counteract rumours that have surrounded banks such as Lehman Brothers in recent months. After the first day's trading, shorting of the 17 stocks named by the SEC had fallen by 70%, and shorting of the troubled Fannie Mae and Freddie Mac dropped by 90%, according to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: