US ushers in short selling rule

The US Securities and Exchange Commission (SEC) has voted to implement a new rule that will impose short selling restrictions only when a stock’s price is plummeting, shying away from reinstating the full “uptick rule”. Under the new rule, short selling will be restricted on the day that a firm’s stock drops more than 10 per cent and the day after. After that short selling will only be permitted at a price above the national best bid for the stock.