SEC to host roundtable on short-selling regulation

Daily news headlines

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.

  • LinkedIn  
  • Save this article
  • Print this page  

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 indvidual account here: