New Restrictions on Short Sales; Disclosure Requirements for Short Sales and Positions; and Relaxed Issuer Repurchase Requirements

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On September 18, the SEC issued a series of emergency orders to address short sales and reporting of short

positions.

Prohibition on Short Selling of ?Included Financial Firms?

Short selling refers to a sale of a security that the seller does not own and that is consummated by the delivery of a security borrowed by, or on behalf of, the seller. Short selling can be a legitimate investment tool; however, short selling also can magnify and accelerate downward pressure on securities and is subject to manipulative actions (such as circulating rumors intended to drive the price lower). On September 17, 2008, the SEC issued new rules regarding short selling, which are meant to rein in ?naked short sales,? wherein the seller sells short securities without borrowing, or arranging to borrow, the subject securities (see our News Bulletin on the SEC?s new short sale rules).

For more information, please read full news bulletin.

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