SEC Extends Short Sale Pilot To 2007

The Securities and Exchanged Commission has announced that it would extend to Aug. 6, 2007 the short sale Pilot due to expire April 28. The SEC reasoned that termination of the pilot at this time – which for its duration temporarily suspended short sale price tests that that the agency could study their effectiveness – would unnecessarily burden market participants with costs associated with price tests. The extension, says the SEC, will give the commission time to assess “whether changes to short sale regulation are necessary in light of current market practices and the purposes underlying short sale regulation.”