US SEC to mull short-sale curbs in coming weeks

By Reuters Staff
February 5, 2010

WASHINGTON, Feb 5 (Reuters) – U.S. securities regulators will consider short selling curbs in “coming weeks,” Securities and Exchange Commission Chairman Mary Schapiro said on Friday.

The SEC has proposed a number of ways to curb short-selling, or investors making bearish bets on stocks.

Those proposals include market-wide curbs and so-called circuit breakers that would impose a restriction on short-selling if a stock fell by a certain percentage.

Schapiro also said the SEC would consider proposals to consolidate some aspects of market surveillance, which is currently shared by in-house teams at trading venues and broker-dealer watchdog the Financial Industry Regulatory Authority.

“It is difficult to connect the dots and ferret out wrongdoing as trading activity frequently occurs across various markets and each market is only able to readily see trading activity conducted in their own market,” Schapiro said at a Practising Law Institute conference in Washington. (Reporting by Rachelle Younglai, editing by Gerald E. McCormick) ((rachelle.younglai@thomsonreuters.com; +1 202 898 8411)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com

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