Financial Times FT.com

Short-selling rule to exclude market makers

By Joanna Chung in Washington

Published: July 19 2008 03:42 | Last updated: July 19 2008 03:42

Market makers, special traders that match buyers and sellers in the stock market, will be partly excluded from the emergency rule aimed at stopping abusive short-selling, the US Securities and Exchange Commission said on Friday.

The amendment comes three days after the issue of an emergency rule barring so-called “naked” short-selling of shares in significant financial entities, including mortgage financiers Fannie Mae and Freddie Mac and 17 banks, including big Wall Street firms.

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