Alert October 21, 2008

SEC Adopts Interim Final Rule 10a-3T Requiring Institutional Managers to Report Certain Short Positions to the SEC on Form SH

The SEC adopted new interim final Rule 10a-3T under the Securities Exchange Act of 1934, as amended.  The interim final rule requires certain large institutional managers (i.e., those with $100 million or more in assets under management) to report to the SEC on Form SH their short positions in “13f” securities, other than options.  Rule 10a-3T is in effect an extension of the emergency order issued by the SEC on September 17, 2008 (the “September 17th Order”, as amended on September 21, 2008), which required managers to file non-public Form SH reports with the SEC regarding short positions in 13f securities and which expired at midnight on October 17, 2008.  Rule 10a-3T became effective on Saturday, October 18th, 2008 and will continue through August 1st 2009.  For more on Rule 10a-3T, see the October 16, 2008 Special Edition of the Alert.