SEC Press press_release 8 KB 4,316 chars

Commission Announces SEC Roundtable on Regulation SHO Pilot

Release: 2006-94

summary

The SEC announced a 2006 regulatory roundtable to evaluate the empirical effects of suspending short-sale price restrictions under the Regulation SHO Pilot, seeking public and academic input to inform potential rule changes—no fraud, charges, or enforcement actions were involved.

paragraph

The SEC launched the Regulation SHO Pilot to suspend short-sale price tests like the Tick Test on a subset of stocks and gather empirical data on their impact on liquidity, volatility, and market efficiency. No fraud or misconduct was alleged; the initiative was purely a policy research effort inviting academic papers and public feedback from finance experts, brokers, and investors. All submissions were to be submitted by August 15, 2006, under File Number 4-520, and would become part of the public record to guide future regulatory decisions without any enforcement outcome.

narrative

The Securities and Exchange Commission announced on June 13, 2006, a regulatory roundtable scheduled for September 15, 2006, to assess the Regulation SHO Pilot, which temporarily suspended short-sale price restrictions such as the Tick Test on a subset of U.S. stocks. The goal was not to investigate fraud or impose penalties, but to collect empirical evidence on how removing these restrictions affected market liquidity, volatility, and efficiency. The SEC invited academic experts, brokers, dealers, exchanges, investors, and professors to submit research papers and public comments by August 15, 2006, under File Number 4-520. All submissions were to be made publicly available and would inform potential future changes to short-selling rules. The Office of Economic Analysis coordinated the effort, with staff members including Chester Spatt and Jonathan Sokobin overseeing participant selection and feedback collection. The roundtable was open to the public on a first-come, first-served basis, and no enforcement actions or financial penalties were associated with the initiative. The entire process reflected the SEC’s commitment to evidence-based regulation, not prosecution. The outcome was intended solely to guide regulatory policy, not to resolve any alleged wrongdoing.

Enriched metadata

Scheme: non-corporate (100%)

Classified non-corporate(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Entities 6

person oea staff members
person regulation sho pilot
agency sec chairman christopher cox
agency sec roundtable on regulation sho pilot
agency Securities and Exchange Commission
person short sale price test

Triples 10

Securities And Exchange Commission announced SEC Roundtable On Regulation SHO Pilot
Securities And Exchange Commission will host roundtable on Sept. 15, 2006
Regulation SHO Pilot suspends provisions of Rule 10a-1(a)
Regulation SHO Pilot suspends short sale price test
SEC Chairman Christopher Cox said Regulation SHO Pilot demonstrates commitment to empirical research
Securities And Exchange Commission seeking written feedback from professors, brokers, dealers, exchanges, investors
Office Of Economic Analysis is chief advisor to the Commission
OEA Staff Members welcome suggestions about potential papers and participants
OEA Staff Members hope to finish inviting participants on or around Aug. 15, 2006
Securities And Exchange Commission will post all submissions on the Commission’s Internet Web site

View original SEC press releasesec.gov

Extracted body text (4,316c)

Commission Announces SEC Roundtable on Regulation SHO Pilot FOR IMMEDIATE RELEASE 2006-94 Washington, D.C., June 13, 2006 — The Securities and Exchange Commission announced today that it will host a roundtable on Sept. 15, 2006, at the Commission’s headquarters in Washington, D.C., to discuss the efficacy of rules that limit the execution prices of short sales, such as the Tick Test (Rule 10a-1 under the Securities Exchange Act of 1934) and the Bid Test (NASD Rule 3350). The discussion will focus on empirical evidence learned from the Regulation SHO Pilot. The roundtable will include a panel discussion by leading academic experts in addition to several research paper presentations. The roundtable is open to the public, on a first-come, first-served basis. For planning purposes, members of the public wishing to attend are asked to notify the Commission by sending an e-mail to [email protected]. The Regulation SHO Pilot suspends the provisions of Rule 10a-1(a) under the Securities Exchange Act of 1934 (the Act) and any short sale price test of any exchange or national securities association for a subset of stocks. The pilot is intended to provide empirical data to help assess whether short sale price restrictions should be removed, in part or in whole, for US securities, or if retained, should be applied to additional securities. More information on the Regulation SHO Pilot can be found at http://www.sec.gov/spotlight/shortsales.htm. “The Regulation SHO Pilot demonstrates the Commission’s commitment to base our regulatory decisions on sound empirical research,” said SEC Chairman Christopher Cox. “The pilot is a unique opportunity to better understand the effect of short selling price limits in US financial markets. This roundtable gives us access to leading academic experts, their findings and opinions. We welcome the opportunity to learn from those who conduct empirical research on Commission issues and we look forward to hearing about short selling research from these experts.” The Commission further announced today that it is seeking written feedback from finance, economics, accounting, and law professors, brokers, dealers, exchanges, investors and others on their experiences and empirical evidence from the Regulation SHO Pilot. In particular, how do price restrictions affect liquidity, volatility, and market efficiency? Does the evidence suggest eliminating or amending existing price restrictions? The information that is submitted will become part of the public record of the Regulation SHO Pilot. The Office of Economic Analysis (202-551-6600), or OEA, is the chief advisor to the Commission and its staff on all economic issues associated with the SEC's regulatory activities. More information about the office and its staff can be found at http://www.sec.gov/about/economic.shtml. The OEA staff members coordinating the roundtable, including Chester Spatt, Jonathan Sokobin, Stewart Mayhew, Amy Edwards, Tim McCormick, and Allan Zebedee, welcome suggestions about potential papers and participants. These OEA staff members hope to finish inviting participants on or around Aug. 15, 2006. Members of the public are encouraged to provide feedback and suggestions before Aug. 15, 2006. Submissions to the Commission may be provided by any of the following methods: Electronic submissions: Use the Commission’s Internet submission form at www.sec.gov/news/press.shtml; or Send an e-mail to [email protected]. Please include File Number 4-520 on the subject line. Paper submissions: Send paper submissions in triplicate to Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-1090. All submissions should refer to File Number 4-520. This file number should be included on the subject line if e-mail is used. To help us process and review your submissions more efficiently, please use only one method. The Commission will post all submissions on the Commission’s Internet Web site (http://www.sec.gov/comments/4-520/4-520.shtml). All submissions received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. http://www.sec.gov/news/press/2006/2006-94.htm Home | Previous Page Modified: 07/13/2006

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