The Securities and Exchange Commission ("SEC") exercised its emergency powers under Section 12(k)(2) of the Securities Exchange Act of 1934 to extend the Emergency Orders issued on September 17 and September 18 1. These Emergency Orders and subsequent guidance were described in Amex Notices 2008-35, 2008-36, 2008-37, 2008-40, 2008-41, 2008-42, 2008-44 and 2008-45.
Extension of Orders
Temporary Prohibition of Short Selling in Financial Companies
This Order (58592, dated September 18, 2008 and amended September 21, 2008, 58611) was set to expire at 11:59 p.m. ET on October 2, 2008. It will now expire at 11:59 p.m. EDT on the third business day after enactment of anticipated legislation, but in no case later than 11:59 p.m. ET on October 17, 2008.
Hard T+3 Close-Out Requirement for Naked Short Selling
This Order (58572, dated September 17, 2008) was set to expire at 11:59 p.m. ET on October 1, 2008. It will now expire at 11:59 p.m. ET on October 17, 2008, but the SEC intends that the Order will continue in effect beyond that date without interruption in the form of an interim final rule.
Permanent Changes that are Not Set to Expire
Repeal of Exception for Options Market Makers from Short Selling Close-Out Provisions of Regulation SHO
This exception was repealed effective at 12:01 a.m. ET on September 18, 2008 through a final rule, and is not set to expire.
Rule 10b-21 Naked Short Selling Anti-Fraud Rule
This new rule, which became effective at 12:01 a.m. ET on September 18, 2008, covers short sellers who deceive broker-dealers or any other market participants about their intention or ability to deliver securities in time for settlement. This new rule is not set to expire.
Other Changes
Requirement that Institutional Money Managers Report Certain Short Sales
This Order (58591, dated September 18, 2008 and amended September 21, 2008, 58591A) was set to expire at 11:59 p.m. ET on October 2, 2008. This Order will also be extended, to 11:59 p.m. ET on Oct. 17, 2008, but the SEC intends that the Order will continue in effect beyond that date without interruption in the form of an interim final rule.
Easing of Restrictions on Company Buy-Back Orders
This Order (58588, dated September 18, 2008) was set to expire at 11:59 p.m. ET on October 2, 2008, but will be extended to 11:59 p.m. ET on October 17, 2008.
Please direct any questions on this Notice to Rick Farber at 212-306-5310 or rfarber@nyx.com or to Ellen O'Rourke at 212-306-5310 or eo'rourke@nyx.com.
1 The SEC's Emergency Orders can be found at: http://www.sec.gov/spotlight/emergencyactions.htm