• SEC Adopts Short Selling Rule Giving Permanent Effect to Close-Out Requirement
  • August 7, 2009 | Authors: Mark S. Bergman; David S. Huntington; Raphael M. Russo
  • Law Firm: Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office
  • On July 27, 2009, the Securities and Exchange Commission gave permanent effect to a short selling rule designed to reduce the potential for abusive "naked" short selling. The rule, which was adopted last fall on an interim final basis, requires market participants to close out short sales within three days after the transaction date.