Document ID: SEC-2008-1383-0001
Agency: sec
Document Type: Notice
Title: Order Extending Emergency Order Pursuant to Section 12(K)(2) of the Securities Exchange Act (of 1934): Taking Temporary Action to Respond to Market Developments
Posted Date: 2008-10-08T04:00Z

[Federal Register: October 8, 2008 (Volume 73, Number 196)]
[Notices]               
[Page 58994]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc08-101]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 58723]

 
Order Extending Emergency Order Pursuant to Section 12(K)(2) of 
the Securities Exchange Act of 1934 Taking Temporary Action To Respond 
to Market Developments

October 2, 2008.
    Pursuant to Section 12(k)(2) of the Securities Exchange Act of 1934 
(``Exchange Act''),\1\ on September 18, 2008, the Securities and 
Exchange Commission (``Commission'') issued an Emergency Order (the 
``Order'') that prohibited persons from selling short the securities of 
financial institutions. The Order became effective at 12:01 a.m. E.D.T. 
on September 19, 2008 and is currently set to terminate at 11:59 p.m. 
E.D.T. on October 2, 2008.\2\
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    \1\ 15 U.S.C. 78l(k)(2).
    \2\ See Securities Exchange Act Release No. 58592 (Sept. 18, 
2008); see also Securities Exchange Act Release No. 58611 (Sept. 21, 
2008).
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    Pursuant to our authority under Section 12(k)(2)(C) of the Exchange 
Act, we are extending the Order. Section 12(k)(2)(C) authorizes the 
Commission to extend an emergency order issued pursuant to Section 
12(k)(2)(A) of the Exchange Act for a total effective period of up to 
30 calendar days, if the Commission finds that the emergency still 
exists and determines that an extension is necessary in the public 
interest and for the protection of investors to maintain fair and 
orderly securities markets.
    We have carefully reevaluated the current state of the markets and 
we remain concerned about the potential for sudden and excessive 
fluctuations of securities prices generally and disruption in the 
functioning of the securities markets that could threaten fair and 
orderly markets. We intend the prohibition to restore investor and 
market confidence by preventing short selling from being used to drive 
down the prices of securities in financial institutions even where 
there is no fundamental basis for a price decline other than general 
market conditions. Thus, we have determined in this environment that 
the standards under Section 12(k)(2) for extending the Order have been 
met. Accordingly, we have determined that extending the Order is in the 
public interest and necessary to maintain fair and orderly securities 
markets and for the protection of investors.
    It is therefore ordered that, pursuant to Section 12(k)(2)(C) of 
the Exchange Act, the Order is extended such that it will terminate at 
the earlier of (i) three business days from the President's signing of 
the Emergency Economic Stabilization Act of 2008 (H.R. 1424), or (ii) 
11:59 p.m. E.D.T. on Friday, October 17, 2008.

    By the Commission.
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-23862 Filed 10-7-08; 8:45 am]

BILLING CODE 8011-01-P