Alerts

Proposed Amendment To Regulation M Regarding Short Selling In Advance Of A Public Offering

December 12, 2006

On December 6, 2006, the Securities and Exchange Commission (“SEC”) released for public comment a proposal to amend Rule 105 under Regulation M, which is aimed at prohibiting certain securities trading in connection with public offerings of securities. The proposed amendment would prohibit, during the Regulation M restricted period, any person or entity from effecting a short sale of securities of an issuer that is in the process of offering the same securities for cash pursuant to a registration statement and subsequently purchasing the securities in the public offering.