Amendments to Regulation SHO and Rule 10a-1

The Securities and Exchange Commission ("Commission' or "SEC') is proposing to amend the short sale price test under the Securities Exchange Act of 1934 ("Exchange Act'). The proposed amendments are intended to provide a more consistent regulatory environment for short selling by removing restrictions on the execution prices of short sales ("price tests' or "price test restrictions'), as well as prohibiting any self-regulatory organization ("SRO') from having a price test. In addition, the Commission is proposing to amend Regulation SHO to remove the requirement that a broker-dealer mark a sell order of an equity security as "short exempt,' if the seller is relying on an exception from a price test.