Financial Times FT.com

Lehman Brothers

SEC poised to act on short-selling

By Joanna Chung in New York

Published: September 15 2008 15:54 | Last updated: September 15 2008 21:10

US securities regulators are expected to adopt new measures against abusive short-selling as early as this week in response to financial market turmoil, according to people briefed on the situation.

Short-sellers aim to profit from share declines, usually by borrowing a stock, selling it and buying it back after its price has decreased. In ”naked” short-selling, shares are sold without being borrowed first.

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