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ALERT: SEC Emergency Orders—Where we are Today

posted by Akin Gump

The Securities and Exchange Commission (SEC) has taken several emergency actions over the last week in an effort to restore confidence in the financial markets.  The emergency orders began on September 17, 2008, with the SEC taking action to curb naked short selling of securities (SEC Release No. 34-58572 September 17, 2008). The SEC took further action on September 18, 2008, with the issuance of three emergency orders relating to—

  • A prohibition of short sales in certain financial stocks (SEC Release No. 34-58592 September 18, 2008),
  • A requirement to report, on a weekly basis, daily short sales by institutional investment managers who currently file reports on Form 13F (SEC Release No. 34-58591 September 18, 2008) and
  • Changes to certain timing and volume conditions on issuer repurchases under Rule 10b-18 of the Securities Exchange Act of 1934 (SEC Release No. 34-58588 September 18, 2008).

The SEC subsequently issued certain technical amendments to the orders relating to 13F filers and the prohibition on short sales in financial stocks on September 21, 2008 (SEC Release No. 34-58611, SEC Release No. 34-58591A).  In an effort to clarify this recent activity, this alert summarizes the current status of the SEC’s emergency actions.

See the full alert here.

If you have questions regarding this alert, please contact—