S. 605 would require the Securities and Exchange Commission to reinstate the uptick rule and effectively regulate abusive short selling activities.
Detailed Summary
Directs the Securities and Exchange Commission (SEC) to take specified actions to regulate short sales of securities, including: (1) reinstating regulations in effect on July 5, 2007, prohibiting short sales of securities unless the previous price movement on such securities had been upward (the uptick rule); (2) rescinding the prohibition against applying certain price tests to short sales; (3) requiring trades by short sellers to yield priority and preference to transactions effected by long sellers of securities; (4) prohibiting short sales of securities of financial institutions unless such trades are effected at a price (in minimum lots, as specified by the SEC) that is at least 5 cents higher than the immediately preceding transaction in such securities; and (5) issuing regulations that prohibit short sales unless the seller can demonstrate a legally enforceable right to deliver the securities at the required delivery date and that require all short sales to settle on the same time frame employed for long sales of the same securities.
Status of the Legislation
Latest Major Action: 3/16/2009: Referred to Senate committee. Status: Referred to the Committee on Banking, Housing, and Urban Affairs.
Points in Favor
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Points Against
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Visitor Comments
Juanita
March 25, 2009, 9:47pm (report abuse)Please support this bill. It will help restore trust in the stock market, where too much abuse has been tolerated, resulting in great harm to honest investors.
Bob
March 26, 2009, 2:55am (report abuse)I could't agree more with Jauntia. We need better oversight by regulators to make the playing field level for all investors.
Amy
March 27, 2009, 5:44pm (report abuse)This bill is a small positive for such a huge negative - we need to start somewhere. Vote YES on S-605!!