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U.S. Securities and Exchange Commission

Commission Announces Panelists for the SEC Roundtable on Regulation SHO Pilot


Washington, D.C., Sept. 5, 2006 - The Securities and Exchange Commission announced today the participants for its upcoming roundtable on 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 (former NASD Rule 3350) and the Commission's pilot program suspending operation of these rules for certain securities. The roundtable will take place on Sept. 15, 2006, from 10:00 a.m. to 3:00 p.m. at the Commission's headquarters in Washington, D.C. An agenda for the meeting is available on the Commission's website (http://www.sec.gov/about/economic/shopilotagenda091506.htm).

The Regulation SHO Pilot suspends the provisions of Rule 10a-1 under the Securities Exchange Act of 1934 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 U.S. 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 morning session of the roundtable will consist of distinguished academic researchers presenting the findings of their empirical studies. In particular, we expect the presentations to focus on how the price tests such as Exchange Act Rule 10a-1 and former NASD Rule 3350 affect liquidity, volatility, and market efficiency. Other researchers will follow each paper presentation with a short critical discussion of the work.

The afternoon session will be a panel session focusing on the perspectives of leading scholars from academia and industry regarding the practical application of economic evidence on short selling. For example, do the panelists believe that the evidence suggests changes to Exchange Act Rule 10a-1 or former NASD rule 3350? Do price tests impose costs that are justified by their benefits? Should price tests apply only to smaller stocks, to all stocks, or to no stocks? What other evidence should be considered?

The participants for the morning session include:

  • Gordon J. Alexander, John Spooner Chair in Investment Management and Professor of Finance, Carlson School of Management at the University of Minnesota
  • Frank Hatheway, Chief Economist, The NASDAQ Stock Market, Inc.
  • Charles Jones, Professor of Finance, Graduate School of Business, Columbia University
  • Paul J. Irvine, Assistant Professor, Terry College of Business, University of Georgia
  • Adam Reed, Assistant Professor of Finance, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill
  • Ingrid Werner, Martin and Andrew Murrer Professor of Finance, Fisher College of Business, The Ohio State University

The participants for the afternoon session include:

  • Larry Harris, Fred V. Keenan Chair in Finance, USC Marshall School of Business
  • Albert S. "Pete" Kyle, Charles E. Smith Professor of Finance, Robert H. Smith School of Business, University of Maryland
  • Owen Lamont, Professor of Finance, Yale School of Management, and Portfolio Manager, DKR Fusion
  • Bruce N. Lehmann, Professor of Economics and Finance, Graduate School of International Relations and Pacific Studies, University of California at San Diego
  • Richard R. Lindsey, President, Bear Stearns Securities Corp.
  • George Sofianos, Vice President, Equity Execution Strategies, Goldman, Sachs & Co.

Moderators of the roundtable include:

  • Chester Spatt, Chief Economist, Office of Economic Analysis, U.S. Securities and Exchange Commission
  • Amy K. Edwards, Financial Economist, Office of Economic Analysis, U.S. Securities and Exchange Commission
  • Bob Colby, Deputy Director, Division of Market Regulation, U.S. Securities and Exchange Commission
  • James Brigagliano, Acting Associate Director, Division of Market Regulation, U.S. Securities and Exchange Commission

The roundtable will be held in the Auditorium at the Commission's headquarters at 100 F Street, N.E., Washington, D.C., and will be open to the public. Doors will open at 8:00 a.m. Visitors will be subject to security checks. For planning purposes, members of the public wishing to attend are asked to notify the Commission by sending an e-mail to RegSHOPilot@sec.gov. This will allow us to provide sufficient copies of handouts and to facilitate security screening.

The Commission welcomes feedback on the Regulation SHO Pilot. Submissions to the Commission may be provided by any of the following methods:

Electronic submissions:

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.



Modified: 09/05/2006