Search:
   

Wednesday, September 24, 2008

Equity Regulatory Alert #2008 - 27
UPDATE: SEC Issues Further Guidance to Protect Investors Against “Naked” Short Selling

Please Route To:

Head Traders; Technical Contacts; Compliance Officers

What you need to know:

As stated in Regulatory Alert #2008-25, the Securities and Exchange Commission (SEC) issued further guidance to protect investors against "naked" short selling:

The SEC is "extending temporary Rule 204(a)'s close-out requirement for fails to deliver attributable to bona fide market making activities by registered market makers, options market makers, or other market makers obligated to quote in the over-the-counter market (collectively, "Market Makers")."

As a result, NASDAQ® Market Makers must "close out the fail to deliver position attributable to a Market Maker by no later than the beginning of regular trading hours on the morning of the third settlement day after the settlement date for the transaction that resulted in the fail to deliver position."

In order to receive such relief, a NASDAQ Market Maker to which a fail to deliver position at a registered clearing agency is attributable, must fill out and submit the attached form per security, per event to:

  1. attest in writing to the market on which it is registered that the fail to deliver position at issue was established solely for the purpose of meeting its bona fide market making obligation, and,
  2. describe the steps the Market Maker has taken in an effort to deliver securities to its registered clearing agency.

NASDAQ Market Makers wishing to invoke this temporary relief should fax the Written Attestation form to NASDAQ MarketWatch at +1 301 978 8511.

Where can I get additional information?


Email Alert Subscriptions:
Nasdaq offers customers the ability to self select news delivery across various Nasdaq markets. Create and maintain a profile for updating alert preferences and contact information. Visit the enrollment form on the Nasdaq Trader website and sign up today! Please note that if you choose to unsubscribe from an email list, you may no longer receive potentially critical emails from the NASDAQ Stock Market regarding Nasdaq's trading and data products, regulatory issues or marketplace initiatives. To unsubscribe, also click on the enrollment form

Please follow Nasdaq on Facebook RSS and Twitter.

Nasdaq (Nasdaq: NDAQ) is a leading global provider of trading, clearing, exchange technology, listing, information and public company services. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 90 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to approximately 3,900 total listings with a market value of approximately $13 trillion. To learn more, visit: business.nasdaq.com.

View NASDAQTrader.com Mobile