SEC Makes Naked Short-Selling Rule Permanent
The new rule, Rule 204, requires short-sellers to deliver securities at settlement or three days after the sale transaction date.
If the short-seller fails to deliver, any broker-dealer acting on his behalf will be barred from making further short-sales in the same security unless the shares are not only located but also pre-borrowed. Rule 204 will go into effect on July 31, when the temporary rule was...
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