Updated from 11:04 a.m. EDTThe Securities and Exchange Commission has recommended several short-selling restrictions, including a reinstitution of the so-called uptick rule, to be enacted to help stabilize markets. The five SEC commissioners voted unanimously to put five different proposed measures, representing two different approaches that would combat abusive short selling, out for a 60-day comment period. One approach would apply on a permanent basis for all securities, while the other would apply only to a particular security during severe market declines. In the first approach, the commission would restore the old uptick rule or institute a modified version. The latter proposal would require trading centers to establish policies that prevent the short-sale of an order at a price below the prior sale. It is also based on the national best bid, similar to the former Nasdaq "bid" test.
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