SEC Extends Short-Selling Limitations

The Securities and Exchange Commission plans to extend temporary limits it has placed on short-selling and expand limitations to include more stocks in addition to the 19 financial companies it originally targeted, according to The Wall Street Journal.

Executives, lobbyists, and hedge-fund representatives of the Managed Funds Association, the largest hedge-fund industry group, are attempting to convince the SEC not to extend the limitations, which are set to expire on Tuesday.

According to the WSJ, regulators gave the funds a “fair degree of certainty” that the SEC intends to seek an extension of the emergency period. The extension could be for 60 days, involving insurance, housing-industry, and other stocks. SEC Chairman Christopher Cox indicated that rules might apply to all financial stocks.

The SEC will decide by 11:59 p.m. EDT Tuesday, whether the SEC will extend its emergency order or allow it to expire.

The SEC is planning on making short-selling rules permanent. After narrowing down the options and recommending them to the four SEC commissioners, the process could happen as soon as Monday. If approved, the rules would not be finalized until later this year.