Securities and Exchange Commission July 3, 2007 – Federal Register Recent Federal Regulation Documents

The Securities and Exchange Commission (``Commission'') is amending the short sale price test under the Securities Exchange Act of 1934 (``Exchange Act''). The amendments are intended to provide a more consistent regulatory environment for short selling by removing restrictions on the execution prices of short sales (``price tests'' or ``price test restrictions''), as well as prohibiting any self- regulatory organization (``SRO'') from having a price test. In addition, the Commission is amending Regulation SHO to remove the requirement that a broker-dealer mark a sell order of an equity security as ``short exempt,'' if the seller is relying on an exception from a price test.