By Cydney Posner

The SEC has extended its emergency orders regarding short selling and issuer repurchases, as well as certain other emergency or related actions. (See postings on September 17, 18 and 19.) Specifically, the orders cover the following:

Temporary prohibition of short selling in financial companies. This order will expire at 11:59 p.m. ET on the third business day after enactment of anticipated legislation, but in any case no later than 11:59 p.m. ET on October 17, 2008.

Temporary requirement that institutional money managers report to the SEC their new short sales of certain publicly traded securities. This order will also be extended to 11:59 p.m. ET on October 17, 2008, but the SEC intends that the order will continue in effect beyond that date without interruption in the form of an interim final rule. Disclosure under the emergency order will be made only to the SEC.

Temporary easing of restrictions on the ability of securities issuers to repurchase their securities. This order will be extended beyond its currently scheduled expiration to 11:59 p.m. ET on October 17, 2008.

Hard T+3 close-out requirement for naked short selling; penalties for violation include prohibition of further short sales without mandatory pre-borrow. The emergency order will now expire at 11:59 p.m. ET on October 17, 2008, but the SEC intends that the order will continue in effect beyond that date without interruption in the form of an interim final rule.

Repeal of exception for options market makers from short selling close-out provisions in Regulation SHO. This exception was repealed effective at 12:01 a.m. ET on September 18, 2008, through a final rule to eliminate the options market maker exception from the close-out requirement of Rule 203(b)(3) in Reg SHO.

Rule 10b-21 naked short selling anti-fraud rule. The new rule became effective at 12:01 a.m. ET on September 18, 2008.

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