• SEC Votes to Adopt Short Sale Price Restrictions
  • March 17, 2010
  • Law Firm: Winston & Strawn LLP - Chicago Office
  • On February 24th, the Securities and Exchange Commission (the “SEC” or the “Commission”) held an open meeting at which the commissioners voted 3-2 to approve a new short sale pricing rule - Rule 201 under Regulation SHO (“Rule 201” or the “new rule”). Rule 201 combines the “circuit breaker” concept embodied in one of the short sale price restrictions proposed in April 2009 with the “alternative uptick rule” proposed in August 2009. Rule 201 will apply to “covered securities,” generally, any equity security listed on a national securities exchange, whether that security is traded on an exchange or it is traded over-the-counter. Under Rule 201: