Short Sale Regulation Update: SEC Adopts "Alternative Uptick Rule"
On February 24, 2009, the Securities and Exchange Commission adopted Rule 201 of Regulation SHO, also known as the “alternative uptick rule”, by a vote of 3 to 2. The adoption of Rule 201 is the latest action by the Commission relating to the regulation of short sales and represents culmination of a rulemaking process that began with the issuance by the Commission of a proposing release in April 2009, followed by a supplemental request for comments issued in August 2009.