U.S. Chamber Responds to SEC Actions to Curb Abusive Naked Short Selling

U.S. Chamber Responds to SEC Actions to Curb Abusive Naked Short Selling

WASHINGTON, D.C.—David Hirschmann, the President and CEO of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness (CCMC), made the following statements in response to the SEC's new rules on illegal naked short-selling:

"We commend the Commission for taking three needed actions to enhance investor protection and thwart fraudulent abusive naked short selling in our financial markets. The SEC has adopted long-awaited changes to close loopholes exploited by naked short sellers. We also welcome the SEC's action to impose additional penalties for intentionally failing to deliver shares of borrowed securities.

"The SEC has the duty to take all reasonable and necessary steps to address manipulation, rumor-mongering, and abuse on both the long and short side of the markets. We urge the Commission to take additional steps, including appropriate disclosure of short positions to the SEC, so that it has all the information it needs to help deter, detect, and punish short-side fraud.

"The Chamber will carefully monitor the implementation of these new rules over the next 30 days to make sure that these changes function as intended to address legitimate problems and that they don't impede legitimate and necessary market activity—including short selling which is essential to liquid and well-functioning markets.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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