Jenner & Block

Client Advisory: SEC Issues Emergency Orders Regarding Short Selling in Effort to Curtail the Crisis of Confidence

In this client advisory, Partners William L. Tolbert, Jr. and Elaine Wolff discuss three emergency orders issued by the SEC on September 18 in an effort to curb sudden price declines in securities of financial institutions unrelated to true price valuation.  The three emergency orders have the effect of: banning short selling in the securities of 799 financial companies; requiring hedge funds and other large investors to report new short sales; and easing restrictions on issuer repurchases.