Short Selling Rules Expire Today

Last month, the SEC imposed a temporary rule that requires investors to borrow stock before executing a short sale in 19 major Wall Street firms such as Citigroup (C.N) and Lehman Brothers (LEH.N), as well as mortgage finance groups Freddie Mac (FRE.N) and Fannie Mae (FNM.N).

Investors who bet on falling stock prices also have been required to deliver the securities by the settlement date.

The emergency rules, which expire later on Tuesday, were a part of a crackdown on possible market manipulation that some blame for steep declines in the shares of financial companies.

The SEC's new proposal is slated to be unveiled in mid September but could take months to finalize, the paper said.



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