Hedge Funds

SEC adopts short-selling rule change

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The SEC has adopted the changes it proposed last October to its short-selling rules, including a move to temporarily suspend the so-called uptick rule. The new rule, called Regulation SHO, includes a move to suspend the law that prohibits selling a stock short, unless the previous price movement in the stock is an increase, on a one-year pilot basis. This is a reduction of the two-year pilot originally proposed in October and applies to all the stocks traded in the Russell 1000 index.

The SEC originally enacted the uptick rule in 1934 as part of the Securities and Exchange