WASHINGTON (HedgeWorld.com)–The Securities and Exchange Commission has delayed the start of pilot program for the suspension of the “uptick rule” for short sales.
The pilot, established by the SEC on July 28 (see ) and previously scheduled to commence on Jan. 3, 2005, will formally suspend the provisions of rule 10a-1(a) under the Securities Exchange Act, requiring short sales to be on the uptick, for certain listed securities. The new order resets the pilot program to begin May 2, 2005, and continue through April 28, 2006.
All other terms of the July 28 order remain unchanged.
In announcing the delay Nov. 30, the SEC said that self-regulatory organizations and broker-dealers have informed its staff of difficulties with implementation that can’t be resolved by Jan. 3. Broker-dealers will need to make significant changes to ensure that short-sale orders for pilot stocks are marked properly and that the marking is maintained at each stage of processing and order.