- Cox notes that the SEC is mulling getting rid of the reasonable grounds alternative in Regulation SHO.
- The SHO regulation was implemented to deal with naked short selling and it requires broker-dealers, before they accept short sale orders to first borrow the security to be shorted.
- However, brokers could seek exemptions from SHO if the broker has reasonable grounds that a security can be borrowed.
- The SEC is also examining other remedies to deal with naked short selling abuses such as the reporting of substantial short positions.
- Additonally, the SEC is considering broadening the naked short sale restrictions placed on financial companies to the broader market.

Financials sector headlines

• SAN.SP Today 02:16am
  Banco Santander Central Hispano SA WestLB Equity Markets Raised SAN.SP to Buy from Hold
  
• BWY.UK Today 02:05am
  Bellway PLC Reports order book as of end of Nov £340M v £677M y/y- Says group has secured 75% of current annual target - On track to meet debt reduction traget - Cannot rule out further adjustment to land more...
  
• NSAM.UK Today 01:39am
  New Star Asset Management Update: Lloyds-HBOS to acquire up to 95% of firm -Guardian- Offer is debt of equity swap in which New Star group will be delisted - Reaching a peak valuation of £500M, New Star no valued at less more...
  
• DEQ.GE Today 01:23am
  Deutsche Euroshop HSBC Initiates DEQ.GE with Neutral
  
• HR Today 01:03am
  Healthcare Realty Trust JPMorgan Initiates HR with Neutral