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SEC Approves Curbs on Short Selling

23 March 2010

The U.S. Securities and Exchange Commission (SEC) has approved a new "circuit breaker" restriction on short sales in U.S.-listed equity securities that experience a price decline of 10% or more from the prior day's closing price.

Once the circuit breaker has been triggered, short selling in the relevant security will only be permitted at prices above the current national best bid for the remainder of the trading day as well as the following trading day, subject to certain exemptions.

If you have any questions regarding the new U.S. short selling restrictions and about how they may impact you and your company, please contact any of the U.S. securities lawyers listed in the related Allen & Overy bulletin, or any other Allen & Overy lawyer with whom you have consulted in the past on similar matters.

Download a copy of the Allen & Overy Bulletin on the new SEC restrictions on Short Selling .