On July 15, 2008, the SEC issued an emergency order to enhance investor protections against "naked" short selling in the 19 securities listed below.
The SEC's order provides that no person may effect a short sale in these securities unless such person (or agent) has pre-borrowed or arranged to borrow the security or otherwise has the security, and delivers the security on settlement date.
In order to allow market participants time to adjust their operations to implement the enhanced requirements, this Order shall take effect at 12:01 a.m. EDT on Monday, July 21, 2008. This Order shall terminate at 11:59 p.m. EDT on Tuesday, July 29, 2008 unless further extended by the Commission.
The SEC intends to grant limited relief for specialists and registered market makers with respect to the pre-borrowing requirement but has not released its written guidance as of yet. NYSE will keep you informed regarding this relief and other interpretive guidance from the SEC.
Affected Securities
| Company Name | Symbol |
| BNP Paribas Securities Corp. | BNPQF or BNPQY |
| Bank of America Corporation | BAC |
| Barclays PLC | BCS |
| Citigroup Inc. | C |
| Credit Suisse Group | CS |
| Daiwa Securities Group Inc. | DSECY |
| Deutsche Bank Group AG | DB |
| Allianz SE | AZ |
| Goldman, Sachs Group Inc | GS |
| Royal Bank ADS | RBS |
| HSBC Holdings PLC ADS | HBC and HSI |
| J. P. Morgan Chase & Co. | JPM |
| Lehman Brothers Holdings Inc. | LEH |
| Merrill Lynch & Co., Inc. | MER |
| Mizuho Financial Group, Inc. | MFG |
| Morgan Stanley | MS |
| UBS AG | UBS |
| Freddie Mac | FRE |
| Fannie Mae | FNM |
SEC Press Release
SEC Release No. 58166
Category: Securities
