Regulation SHO


Advisers

In an effort to promote market stability, on February 26, 2010, the SEC adopted the alternative uptick rule, Rule 201 of Regulation SHO, which restricts short selling under the following circumstances. If a stock experiences a price decline of at least 10% in one day, a circuit beaker will be triggered. Once the circuit breaker has been triggered, short selling will only be allowed if the price of the security is above the current national best bid and this restriction will remain in place until the end of the following trading day. The rule applies to equity securities listed on a national exchange, even if those securities are traded on an over-the-counter market and requires trading centers to establish written policies and procedures to prevent the execution or display of prohibited short sales.

 

 

 

 

 

 

 

   
 
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