Financial Times FT.com

‘Naked’ short-selling rule set to expire

By Joanna Chung in New York

Published: August 10 2008 18:34 | Last updated: August 10 2008 18:34

An emergency measure protecting a select group of financial stocks from abusive short-selling expires on Tuesday, probably leaving at least a two-month gap before a similar rule, currently being considered, is imposed.

The US Securities and Exchange Commission has said that it would not extend the rule preventing “naked” short-selling in shares of 19 key financial entities, including mortgage groups Fannie Mae and Freddie Mac, and big Wall Street firms that include investment bank Lehman Brothers.

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