By Cydney Posner

The SEC today announced several actions designed to curtail abusive short sales.

First, the SEC made permanent Rule 204T, an "interim final temporary rule" (now new Rule 204), which requires broker-dealers to promptly purchase or borrow securities to deliver on a short sale. The temporary rule, approved by the SEC in the fall of 2008, was set to expire on July 31. The SEC is also working with the SROs to increase transparency regarding short sale volume and transaction data and to make it available through SRO websites. The SEC is also continuing to actively consider proposals on a short sale price test and circuit breaker restrictions and plans to hold a roundtable at the end of September.

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