SEC restricts shorts by ProQuest


The Securities and Exchange Commission (SEC) continued its crackdown on short selling by imposing a restriction that options industry leaders say could dampen liquidity in the market. On February 24, the SEC approved the alternative uptick rule, designed to stop short selling from further driving down the price of a stock that has dropped more than 10% in one day. In September 2008, the SEC enacted a temporary emergency ban on short sales, and in July 2009, the agency made permanent Rule 204, which requires broker-dealers to purchase or borrow securities to deliver on a short sale.

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