• Division of Trading & Markets Clarifies Emergency Order Restricting Short Sales of GSEs and Primary Dealers
  • August 10, 2008
  • Law Firm: Winston & Strawn LLP - Chicago Office
  • The Securities and Exchange Commission ("SEC") issued an emergency order (the "Order") on July 15 stating that no person may effect a short sale in the securities ("designated securities") of Fannie Mae, Freddie Mac, and 17 parent companies of primary dealers, unless the person or the person's agent borrows or arranges to borrow the securities or otherwise has the securities available to borrow in its inventory prior to effecting such short sale (a "pre-borrow") and delivers the security on settlement date.