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ARTICLE · 24 SEPTEMBER 2008

SEC Issues Guidance Regarding SEC’s Previous Emergency Order Regarding “Naked” Short Selling

Goodwin Procter LLP
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The SEC’s Division of Trading and Markets has issued guidance in the form of Frequently Asked Questions (“FAQs”) that we referenced in the client alert we issued earlier this evening.

United StatesFinance and Banking

Development Of Note

The SEC's Division of Trading and Markets has issued guidance in the form of Frequently Asked Questions ("FAQs") that we referenced in the client alert we issued earlier this evening. These FAQs deal with the close-out provisions of temporary Rule 204T of Reg SHO, which was adopted by the SEC in an emergency order on September 17, 2008.

Because we feel that these FAQs are critical to our trading clients' ability to ensure their compliance with new Rule 204T with respect to trading this morning, we are issuing this summary analysis of the provisions of the FAQs that we feel are most important.

Pre-Fail Credit Can Be Used To Avoid The 204T "Penalty Box" For Short Sales

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