Antifraud Rules
In October 2008, the Commission adopted Exchange Act Rule 10b-21, making it unlawful for any person to deceive a broker-dealer, participant of a registered clearing agency or purchaser regarding that person’s intent or ability to deliver an equity security on or before the settlement date.(73) The rule’s primary aim is to reduce the incidences of “fails to deliver” for securities and the negative impact that these “fails” have on the market for those securities with delivery failures.
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Antifraud Rules
73. See “Naked” Short Selling Antifraud Rule, Release No. 34-58774, Oct. 14, 2008) 73 FR 61666 (Oct. 17, 2008). Available at: http://www.sec.gov/rules/final/2008/34-58774fr.pdf. See also “Naked” Short Selling Anti-Fraud Rule, Release No. 34-57511 (Mar. 17, 2008) 73 FR 15376 (Mar. 21, 2008). Available at: http://www.sec.gov/rules/proposed/2008/34-57511.pdf.; Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act of 1934 Taking Temporary Action to Respond to Market Developments, Release No. 34-58572 (Sept. 17, 2008), 73 FR 54875 (Sept. 23, 2008). Available at: http://www.sec.gov/rules/other/2008/34-58572.pdf.
