Regulation SHO and Rule 10a-1

The Securities and Exchange Commission ("Commission') is amending the short sale price test under the Securities Exchange Act of 1934 ("Exchange Act'). The 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 amending 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.