SEC Extends Temporary Exemptions from Regulation SHO for Securities Damaged by Hurricane Sandy

The SEC has extended, until May 5, 2013, an exemptive order from the "locate," short sale price test, and close-out requirements of Regulation SHO for sales of securities that had been held in the DTCC vault. In the aftermath of Hurricane Sandy, the Depository Trust Clearing Corporation ("DTCC") reported significant damage within its vault, and that some physical certificates had been made inaccessible. As a result, sales by the owners of these securities, whose settlement is dependent on the delivery of the damaged or missing physical certificates, may experience settlement delays that could raise issues with compliance with Regulation SHO. The SEC is extending its exemptive order so that the sales of these securities will not create a Regulation SHO violation.

View Release in full here (links externally to SEC website).See also: Incoming Letter from SIFMA.Related News Item: SEC Exemptive Order from Certain Rules of Regulation SHO Related to Hurricane Sandy (December 13, 2012).