this crisis has at least some positive effects - i never understood why this was not implemented years ago - well HFs clearly had some power. this is great news for trading and markets in general. note that all is effective as of now... SEC actionThe SECâs Been Busy â Four New Reg. SHO and Short Sale http://www.sec.gov/rules/final.shtml Amendments to Regulation SHO (Interim final temporary rule) http://www.sec.gov/rules/final/2008/34-58773.pdf SUMMARY: The Securities and Exchange Commission (âCommissionâ) is adopting an interim final temporary rule under the Securities Exchange Act of 1934 (âExchange Actâ) to address abusive ânakedâ short selling in all equity securities by requiring that participants of a clearing agency registered with the Commission deliver securities by settlement date, or if the participants have not delivered shares by settlement date, immediately purchase or borrow securities to close out the fail to deliver position by no later than the beginning of regular trading hours on the settlement day following the day the participant incurred the fail to deliver position. Failure to comply with the close-out requirement of the temporary rule is a violation of the temporary rule. In addition, a participant that does not comply with this close-out requirement, and any broker-dealer from which it receives trades for clearance and settlement, will not be able to short sell the security either for itself or for the account of another, unless it has previously arranged to borrow or borrowed the security, until the fail to deliver position is closed out. Effective Date: October 17, 2008 except Â§242.204T is effective October 17, 2008 until July 31, 2009 âNakedâ Short Selling Antifraud Rule (Proposed Rule) http://www.sec.gov/rules/final/2008/34-58774.pdf SUMMARY: The Securities and Exchange Commission (âCommissionâ) is adopting an antifraud rule under the Securities Exchange Act of 1934 (âExchange Actâ) to address fails to deliver securities that have been associated with ânakedâ short selling. The rule will further evidence the liability of short sellers, including broker-dealers acting for their own accounts, who deceive specified persons about their intention or ability to deliver securities in time for settlement (including persons that deceive their broker-dealer about their locate source or ownership of shares) and that fail to deliver securities by settlement date. Effective Date: October 17, 2008. 17 CFR PARTS 241 AND 242 [Release No. 34-58775; File No. S7-19-07] Amendments to Regulation SHO (Final rule) http://www.sec.gov/rules/final/2008/34-58775.pdf SUMMARY: The Securities and Exchange Commission (âCommissionâ) is adopting amendments to Regulation SHO under the Securities Exchange Act of 1934 (âExchange Actâ). The amendments are intended to further reduce the number of persistent fails to deliver in certain equity securities by eliminating the options market maker exception to the close-out requirement of Regulation SHO. As a result of the amendments, fails to deliver in threshold securities that result from hedging activities by options market makers will no longer be excepted from Regulation SHOâs close-out requirement. The Commission is also providing guidance regarding bona fide market making activities for purposes of the market maker exception to Regulation SHOâs locate requirement. EFFECTIVE DATE: October 17, 2008.