Alerts

SEC Bans Short Selling and Imposes New Disclosures

September 19, 2008

Current as of 3:00 pm, September 19, 2008. As the rules discussed below were published only this morning and interpretive issues exist, please consider the following Alert in light of prior advice you may have received, and consider that further information and clarifications may become available subsequent to publication of this Alert. 

Effective immediately, the Securities and Exchange Commission (“SEC”) has banned short selling in the publicly traded securities of certain identified financial firms. In addition, beginning on September 29, 2008, anyone who was required to file a Form 13F for the period ended June 30, 2008 will be required to report certain information about short positions in all Section 13(f) securities (not just those of the identified financial firms) on a new Form SH. The orders banning shorting of the financial firms’ traded securities and the Form SH reporting requirements will terminate on October 2, 2008, subject to further extension by the SEC.