It’s About Time!
The Securities and Exchange Commission, responding to criticism that it hasn’t done enough to curb naked short-selling, is expected to propose changes to a current rule that would reduce the number of open short positions in stocks.[…]
Today at an open meeting, the SEC is expected to vote to amend Reg SHO and eliminate the grandfather clause, which could benefit heavily shorted companies. Eliminating the grandfather clause would force brokers to buy in some positions on threshold-listed securities that were made before the companies made the list. The SEC is also weighing whether to change a provision that allows market makers to have naked short positions. If the changes to the rule are voted, as expected, they will go out for public comment for at least 30 days.
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