Temporary Prohibition of Short Selling in Financial Companies:
The Securities and Exchange Commission's ("SEC's") Division of Trading and Markets announced on Friday, October 3, 2008, that the SEC's Emergency Order prohibiting short sales in securities of certain financial firms will expire at 11:59 pm ET on Wednesday October 8, 2008. 1
Please note that the other SEC Emergency Orders on Short Selling announced in Trader Notice REG 2008-48 2 remain in effect as outlined below:
Hard T+3 Close-Out Requirement for Naked Short Selling
This Order (58572, dated September 17, 2008 and extended October 1, 2008, 58711) is set to expire at 11:59 p.m. ET on October 17, 2008, but the SEC has stated in press release 2008-235, dated October 1, 2008, 3 that it 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This exception was repealed effective at 12:01 a.m. ET on September 18, 2008 through a final rule, and the repeal is not set to expire.Rule 10b-21 Naked Short Selling Anti-Fraud Rule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, amended September 21, 2008, 58591A, and extended October 2, 2008, 58724) is set to expire at 11:59 p.m. ET on Oct. 17, 2008, but the SEC has stated in press release 2008-235, dated October 1, 2008, 4 that it 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 and extended October 1, 2008, 58703) is set to expire at 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.
1The SEC's statement is as follows: "On Friday, October 3, 2008, the President signed the historic Emergency Economic Stabilization Act of 2008 (H.R. 1424), aimed at stemming the credit crisis. Accordingly, the Commission's Emergency Order that prohibits persons from selling short the securities of financial institutions will expire at 11:59 p.m. ET on Wednesday, October 8, 2008." See: http://www.sec.gov/news/press/2008/2008-238.htm.
2Trader Notice REG 2008-48 can be found at: http://www.amex.com/amextrader/tdrInfo/data/axNotices/2008/reg08048.html.