It is going to be a bit longer before hedge funds can short financial stocks again.
The Securities and Exchange Commission yesterday extended its temporary prohibition on the short sale of financial stocks to the end of the day on Friday, October 17 – or three days after Congress passes a financial rescue package. The ban had been set to expire yesterday.
The regulator also said that it would require hedge funds to report their short positions but in recognition of the industry’s concerns has decided that those positions will not be disclosed publicly.
The extension is an effort to