By:  Cydney Posner

The SEC has approved an order to extend the termination date of the short sale pilot program to Aug. 6, 2007. (See my postings of 6/23/04, 7/28/04, 7/29/04 and 12/1/04.) The pilot temporarily suspends short sale price tests for certain securities to allow the SEC to analyze the impact of short selling in the absence of price tests. The pilot program had been scheduled to expire on April 28, 2006.  Extending the termination date will maintain the status quo with regard to price tests while the SEC completes its analysis of the results.

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