Hedge Funds

SEC proposes looser rules on short selling


Even as the SEC considers tightening regulations of hedge funds, it is reviewing rules that may make the business of running a hedge fund easier. On October 22 the Commission voted unanimously to put out for public comment rules that would ease restrictions on selling short the "most highly liquid securities." The regulations would also provide a uniform rule on when investors can sell stocks short. The rules, which are the first that the SEC has considered in 27 years on the subject of short-selling, would be introduced under a two-year "pilot program."