Politics & Regulation

SEC finalizes new short sale rules

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The U.S. Securities and Exchange Commission issued new guidelines governing short selling that will require more disclosure and greater adherence to stock-borrow rules

The U.S. Securities and Exchange Commission issued new guidelines governing short selling that will require more disclosure and greater adherence to stock-borrow rules. 

The new rules stop short of forcing short sellers to publicly disclose their trading books or the outright ban on so-called naked shorting, in which traders sell stock without first borrowing it.

The new rules will require financial self regulatory organizations, including the Financial Industry Regulatory Authority, to publish daily the aggregate number of short sales on individual stocks. SROs must also provide a more expansive monthly report, on a one-month delay, detailing the