Options Market Wins Ally In Bid To Get Short Sale Exemption

Discussion in 'Wall St. News' started by Billy Thunder, Sep 30, 2009.

  1. NEW YORK (Dow Jones)--The options market has gained an important ally as it attempts to secure an exemption from future short-selling restrictions.

    Rep. Barney Frank, the Massachusetts Democrat who chairs the House Financial Services Committee, has asked the U.S. Securities & Exchange Commission to grant an exemption to market makers in the options market, saying these traders engage in "legitimate short selling activity."

    "I believe the option market-maker function is an important one that should not be inappropriately limited by the SEC's proposed rule," Frank said in a Sept. 22 letter to SEC Chairman Mary Schapiro that was obtained by Dow Jones Newswires.