SEC Issues Emergency Orders Banning Certain Short Selling Practices In Light Of Market Developments

On September 17 and 18, 2008, the Securities and Exchange Commission (the "Commission") issued three emergency orders restricting certain short selling practices. These orders:

• ban the failure to deliver a security upon settlement of any long or short sale of an equity security, effectively prohibiting the practice of "naked" short selling in any equity security;

• prohibit all persons from engaging in any short sale of a publicly traded security in nearly 800 financial institutions and other financial companies, subject to certain exceptions; and

• require that certain institutional investment managers report to the SEC on a weekly basis specified information regarding their short sales of securities.