The Securities and Exchange Commission has issued an emergency order effective July 21 designed "to enhance protections against naked short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks." Under the emergency order "anyone effecting a short sale in these securities" must "arrange beforehand to borrow the securities and deliver them at settlement." The SEC said its emergency order will terminate on July 29, but "may be extended for no more than 30 calendar days in total duration." The commission said it plans on following up the emergency order with marketwide rulemaking. The SEC can be found at http://www.sec.gov.
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