To keep options traders, customers, and CBOE Members fully informed on recent restrictions on short sale activities, CBOE has created this informational web page. It provides links to relevant SEC and CBOE information documenting the various short sale restrictions. Because regulations can and do change, CBOE is committed to keeping the web page updated on an ongoing basis. We hope that this will be helpful for our members, firms and options traders.
SEC Final Rules
Short Sale Price Test
Delivery Requirements
"Naked" Short Selling Antifraud Rule
Elimination of Options Market Maker Exception to Reg SHO Threshold Securities Close-Out Requirements
SEC Emergency Orders*
Delivery Requirements (emergency order expired Friday, October 17, 2008 and was replaced by an interim final temporary rule; the interim final temporary rule expired July 31, 2009 and was replaced by a final rule - see above.)
Order
Extension
Interim Final Temporary Rule
Short Sale Ban (expired October 8, 2008)
Order
Amendment 1
Extension
"Naked" Short Selling Ban (expired August 12, 2008)
Order
Amendment 1
Extension
*The SEC issued other emergency orders temporarily requiring institutional money managers to file reports of short sales and short positions in certain publicly traded securities and temporarily easing restrictions on the ability of securities issuers to re-purchase their securities. For information on these emergency orders and their current status, please refer to the SEC web site at www.sec.gov.
Select SEC Staff Guidance
Guidance Regarding Sale of Loaned But Recalled Securities (September 28, 2008)
Guidance Regarding the Close-Out and Pre-Borrow Penalty Requirements under Rule 204T (September 23, 2008)
"Tips" for Broker-Dealers on Avoiding Failures to Deliver Securities (September 18, 2008)
Guidance Regarding the Expired July 2008 Emergency Order Concerning Short Selling (July 18, 2008)
Division of Market Regulation: Responses to Frequently Asked Questions Concerning Regulation SHO (December 17, 2004, last updated August 28, 2009)
SEC Spotlight on Short Sales
Select SEC Press Releases
02/24/2010: SEC Approves Short Selling Restrictions
09/25/2009: SEC Announces Panelists for Securities Lending and Short Sale Roundtable
09/11/2009: SEC to Hold Securities Lending and Short Sale Roundtable
08/17/2009: SEC Seeks Comment on Alternative Uptick Rule
07/27/2009: SEC Takes Steps to Curtail Abusive Short Sales and Increase Market Transparency
05/01/2009: SEC Announces Agenda and Panelists For Roundtable on Short Selling
04/24/2009: SEC to Hold Roundtable on May 5 to Examine Short Sale Price Test and Circuit Breaker Restrictions
04/08/2009: SEC Seeks Comments on Short Sale Price Test and Circuit Breaker Restrictions
10/03/2008: Statement Regarding the Extension of the Short Sale Ban
10/01/2008: Statement Regarding Short Selling
09/21/2008: Statement Regarding Technical Amendments to Short Sale Order
09/19/2008: Statement Regarding the Extension of the Options Market Maker Exception to the Short Sale Order
09/17/2008: SEC Issues New Rules to Protect Investors Against Naked Short Selling Abuses
07/29/2008: SEC Extends Order Limiting Naked Short Selling Through August 12
07/15/2008: SEC Enhances Investor Protections Against Naked Short Selling
Select CBOE Circulars
08/11/2009: Short Sales, Temporary Rule 204T of Regulation SHO Now Permanent
10/22/2008: RG08-138 Close-Out Requirement for Market Makers Under Temporary Rule 204T of Regulation SHO
10/21/2008: RG08-137 Modified Bid/Ask Differentials
10/17/2008: RG08-135 Market Maker Attestation Relating to the Close-Out Requirements of Temporary Rule 204T of Regulation SHO
10/16/2008: RG08-132 SEC Issues New Rules Regarding Short Sales
10/08/2008: RG08-129 Modified Bid/Ask Differentials
10/03/2008: RG08-127 Update on SEC Short Sale Ban Order
10/02/2008: RG08-126 Extension of SEC Emergency Orders Concerning Short Selling
10/01/2008: RG08-124 Modified Bid/Ask Differentials
09/29/2008: RG08-120 Short Sale Ban Duration
09/25/2008: RG08-119 Modified Bid/Ask Differentials
09/25/2008: RG08-118 Close-Out and Pre-Borrow Penalty Requirements under Rule 204T (Market Maker Attestation Form)
09/24/2008: RG08-117 SEC Staff Issues Guidance on Temporary Rule 204T
09/22/2008: RG08-115 SEC's Amended Emergency Order Prohibiting Short Sales in Certain Securities
09/19/2008: RG08-114 Notification to OCC of Contrary Exercise Intentions
09/19/2008: RG08-113 Guidance on Temporary Rule 204T (Revised)
09/19/2008: RG08-112 Halt of Short Selling of Financial Stocks (Revised)
09/18/2008: RG08-110 Emergency Order Now Available
09/17/2008: RG08-106 SEC Issues New Rules Regarding Short Sales
07/30/2008: RG08-088 Amended Emergency Order Enhancing Investor Protections Against "Naked" Short Selling (EXTENSION)
07/24/2008: RG08-087 Record Keeping For The Pre-Borrow Requirement Under Amended Emergency Order Enhancing Investor Protections Against "Naked" Short Selling
07/21/2008: IC08-121 Amended Emergency Order Enhancing Investor Protections Against "Naked" Short Selling (UPDATE)
07/18/2008: IC08-120 Amended Emergency Order Enhancing Investor Protections Against "Naked" Short Selling
07/16/2008: IC08-115 Emergency Order Enhancing Investor Protections Against "Naked" Short Selling
05/19/2008: RG08-063 Regulation SHO (Short Sales) Close-Out Requirement, Use of Option Transactions
04/28/2008: RG08-059 Aggregation as it applies to regulation
10/11/2007: RG07-107 Elimination of Grandfather Provision of Regulation SHO
08/28/2007: IC07-132 Regulation SHO Update
08/21/2007: IC07-121 Request for Comments on the Elimination of Options Market-Maker Hedge Exception under Regulation SHO
08/17/2007: RG07-089 Elimination of Grandfather Provision of Regulation SHO
08/09/2007: RG07-087 Short Sales, Regulation SHO Requirement to Close-out Short Positions in Threshold Securities
07/02/2007: IC07-094 CBSX Trader News Update CBSX to Eliminate Reg SHO Tick Test
05/16/2006: RG06-046 Regulation SHO (Short Sales)
02/03/2006: RG06-014 Regulation SHO (Short Sales)
12/12/2005: RG05-127 Short Sales - Regulation SHO Threshold Securities List
05/02/2005: RG05-046 Regulation SHO (Short Sales)
02/22/2005: RG05-020 Regulation SHO (Short Sales)
12/21/2004: RG04-127 Regulation SHO (Short Sales)
11/10/2004: RG04-113 Regulation SHO - Short Sales
If you need assistance, please e-mail the appropriate parties in the Contact CBOE form.