SEC Staff Provides Guidance on Short Sale Emergency Orders: Supplement to FYIs of September 21 and 22, 2008
LawFlash/Client Alert
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published on:
09/25/2008 -
by:
Investment Management and Securities Industry Practices
As the securities industry continues to wrestle with the emergency orders issued last week by the Securities and Exchange Commission (SEC), a number of interpretive questions have been raised. The SEC staff has provided guidance on two of those orders through FAQs and informal conversations with industry participants. The recent guidance relates to the following: (1) the order imposing temporary close-out requirements on short sales, and (2) the order imposing temporary short sale reporting requirements on institutional money managers.
The SEC staff guidance is incorporated into the Q&As below; added or affected Q&As are marked “NEW” or “REVISED” as applicable. The SEC staff has indicated that it will continue to monitor the situation and provide additional guidance as appropriate. Accordingly, our discussion here is subject to further guidance from the SEC and the SEC staff.
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