[18286]
December 2, 2004
TO: EQUITY MARKETS ADVISORY COMMITTEE No. 49-04
CLOSED-END INVESTMENT COMPANY COMMITTEE No. 45-04
SEC RULES COMMITTEE No. 94-04
RE: SEC DELAYS REGULATION SHO PILOT PERIOD
The SEC has issued an order delaying the pilot period for suspension of the operation of
short sale price provisions pursuant to SEC Regulation SHO.1 The pilot suspends the provisions
of Rule 10a-1(a) under the Securities Exchange Act of 1934 and any short sale price test of any
exchange or national securities association for short sales of certain pilot securities. The order
states that the SEC is delaying the pilot in order to provide an opportunity for trading systems
to be modified in a manner that will help achieve the purposes of the pilot.
The pilot, which was established by the SEC on July 28, 2004, was set to commence on
January 3, 2005. Under the SEC’s order, the pilot will now commence on May 2, 2005 and end
on April 28, 2006. The order notes that the compliance date for all other provisions of
Regulation SHO remains January 3, 2005.
Ari Burstein
Associate Counsel
1 The SEC order can be found on its website at http://www.sec.gov/rules/other/34-50747.htm.