Alert March 18, 2008

SEC Issues Release Proposing New Rule on Naked Short Sales

The SEC issued a formal release proposing a new rule intended to address the failures to deliver securities sold short that have been associated with naked short selling.  The rule is intended to highlight the liability of persons who deceive specified persons about their intention or ability to deliver securities sold short in time for settlement and then fail to deliver the securities.  More detailed coverage of the release will appear in a future edition of the Alert.