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New Rule On Short Selling Will Help Protect Market

Law360 (August 30, 2007, 12:00 AM EDT) -- The Securities and Exchange Commission (SEC) has adopted amendments to Regulation M (“Anti-manipulation Rules Concerning Securities Offerings”) that prohibit any person who sells short an equity security that is the subject of a public offering from purchasing the offered securities from an underwriter or broker or dealer participating in the offering.

* Background *

The SEC takes the position that pricing integrity is essential to the capital-raising process in a properly functioning market. The fundamental purpose of Regulation M (Reg M) is to protect the pricing...
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