SEC Passes Uptick Rule To Curb Short Sales

Law360, New York (February 24, 2010, 3:21 PM EST) -- In a move it said was aimed at stabilizing markets and investor confidence, the U.S. Securities and Exchange Commission narrowly voted Wednesday to approve a new rule that curbs short sales of sliding stocks.

The 3-2 vote restrained short-selling on any individual security that experiences a 10 percent decline from the prior day's closing price, according to remarks from Chairwoman Mary L. Schapiro at the start of the meeting.

The so-called alternative uptick rule would trigger a “circuit breaker” any time a stock drops by 10...
To view the full article, register now.