Short sale developments: “close‐out” requirement made permanent and additional regulatory initiatives expected from the Securities and Exchange Commission
Abstract:PurposeThe purpose of this paper is to explain the SEC's final rule, issued on July 27, 2009, making the “close‐out” requirement in Interim Temporary Final Rule 204T permanent and eliminating the short sale and position reporting requirements in Form SH.Design/methodology/approachThe paper explains certain limited modifications to the Temporary Rule, including Rule 204(a)(1), which permits borrowing of securities to close out a fail to deliver position; Rule 204(a)(2), which defines an extended‐settlement prov… Show more
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