SEC Bids To Tighten Naked Short-Selling Rules

Law360, New York (July 12, 2006, 12:00 AM EDT) -- Facing criticism for failing to take adequate measures to curb naked short-selling, the U.S. Securities and Exchange Commission Wednesday proposed amendments to a rule intended to reduce the practice.

The agency unanimously voted to seek public comment on the changes, which come at a time when the practice of naked short-selling has been enduring rising scrutiny from regulators.

"There are still persistent failures to deliver in the marketplace, and some of that is undoubtedly attributable to loopholes in our rules," SEC Chairman Christopher Cox said, according...
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