US securities regulators will consider about four proposals to restrict short selling, including the restoration of the “uptick rule,” SEC chief Mary Schapiro said on Monday. Other proposals on the table include a so-called “bid test” and a “circuit breaker.” Reuters, citing a a source familiar with the matter, said the SEC bid test proposal would only allow shorting at a price above the highest available bid.  The SEC also is crafting two circuit breaker proposals, one of which would temporarily halt short sales of a stock if the stock has already fallen by a certain percentage, Reuters said.

This entry was posted by Stacy-Marie Ishmael on Tuesday, April 7th, 2009 at 4:51 and is filed under Capital markets. Tagged with sec, short selling. Edit this entry.