[Federal Register: November 6, 2003 (Volume 68, Number 215)]
[Proposed Rules]
[Page 62971-63009]
>From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06no03-24]
[[Page 62971]]
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Part V
Securities and Exchange Commission
17 CFR Parts 240 and 242
Short Sales; Proposed Rule
[[Page 62972]]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 240 and 242
[Release No. 34-48709; File No. S7-23-03]
RIN 3235-AJ00
Short Sales
AGENCY: Securities and Exchange Commission.
ACTION: Proposed rule.
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SUMMARY: The Securities and Exchange Commission (Commission) is
publishing for public comment new Regulation SHO, under the Securities
Exchange Act of 1934 (Exchange Act), which would replace Rules 3b-3,
10a-1, and 10a-2. The Commission is also proposing amendments to Rule
105 of Regulation M. Proposed Regulation SHO would, among other things,
require short sellers in all equity securities to locate securities to
borrow before selling, and would also impose strict delivery
requirements on securities where many sellers have failed to deliver
the securities. In part, this action is designed to address the problem
of ``naked'' short selling. Proposed Regulation SHO would also
institute a new uniform bid test allowing short sales to be effected at
a price one cent above the consolidated best bid. This test would apply
to all exchange-listed securities and Nasdaq National Market System
Securities (NMS Securities), wherever traded.
We are also seeking comment on a temporary rule that would suspend
the operation of the proposed bid test for specified liquid securities
during a two-year pilot period. The temporary suspension would allow
the Commission to study the effects of relatively unrestricted short
selling on market volatility, price efficiency, and liquidity.
DATES: Comments must be received on or before January 5, 2004.
ADDRESSES: To help us process and review your comments more
efficiently, comments should be sent by hard copy or e-mail, but not by
both methods. Comments sent by hard copy should be submitted in
triplicate to Jonathan G. Katz, Secretary, Securities and Exchange
Commission, 450 Fifth Street, NW., Washington, DC 20549-0609. Comments
also may be submitted electronically at the following E-mail address: [EMAIL
PROTECTED] All comment letters should refer to
File No. S7-
23-03. Comments submitted by E-mail should include this file number in
the subject line. Comment letters received will be available for public
inspection and copying in the Commission's Public Reference Room, 450
Fifth Street, NW., Washington, DC 20549. Electronically submitted
comment letters will be posted on the Commission's Internet Web site
(http://www.sec.gov).\1\
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\1\ Personal identifying information, such as names or e-mail
addresses, will not be edited from electronic submission. Submit
only information that you wish to make publicly available.
FOR FURTHER INFORMATION CONTACT: Any of the following attorneys in the
Office of Trading Practices, Division of Market Regulation, Securities
and Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-
1001, at (202) 942-0772: James Brigagliano, Assistant Director, or
Gregory Dumark, Kevin Campion, Lillian Hagen, Elizabeth Sandoe and
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Marla Chidsey, Special Counsels.
SUPPLEMENTARY INFORMATION: The Commission is publishing for comment
proposed Regulation SHO and a proposed temporary rule, Rule 202 \2\,
and proposed amendments to Regulation M, Rule 105 \3\ under the
Exchange Act.
For full piece [long]:
http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/03-27660.htm
If anyone has trouble let me know and I'll send them the piece off-list.
