The US Securities and Exchange Commission extended its short selling ban on October 1. Introduced on Friday September 19, the ban was due to expire on October 2 at 11.59pm. One reason for the extension is to allow time for anticipated legislation to be implemented.
Congress has been split this week on devising measures to alleviate the financial crisis. Treasury secretary Hank Paulson’s original plan was rejected, but there are strong hopes that a revised plan could be passed.
The SEC has made several changes to the existing regulations, with differing expiry dates. The ban on short...