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SEC Weighs New Rules for Lending of Securities


txlaw
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http://online.wsj.com/article/SB125415836962146789.html

 

From the article:

 

Lending also plays a role in the SEC's separate effort to limit, in particular, "naked" short selling, in which investors sell stock they don't own. The SEC has said it is exploring a "preborrow" requirement, which would require a short seller to have an agreement to borrow specific stock from a specific broker before placing the order.

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