NIRI Survey Respondents Strongly Support SEC's Proposed Short Sale Reforms.VIENNA, Va. -- The National Investor Relations Institute The National Investor Relations Institute, known as "NIRI", is the professional association for investor relations professionals in the United States.
NIRI was founded in 1969 and has more than 4,500 members, both from the United States and other countries. (NIRI NIRI National Investor Relations Institute
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NIRI New Ideas Research Institute ), the largest association of public company investor relations Investor relations
The process by which the corporation communicates with its investors. professionals in the world, today announced that a significant majority of members responding to a recent survey support short sale reforms, including those contained in the proposed amendments to Regulation SHO Regulation SHO
A regulatory addition by the Securities & Exchange Commission, expanding and updating the restrictions placed on short sale transactions. The updated regulations came into effect on Jan 3, 2005 and help to address several key issues in the short sale market. by the U.S. Securities and Exchange Commission (SEC).
NIRI conducted a member survey from April 23, 2009 to May 1, 2009 to aggregate their opinions and experiences regarding short selling Short Selling
The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. . Approximately 7.5%, or 295, NIRI members participated in the survey. The results indicate strong support for short sale reforms among survey respondents:
* 91% favor a market-wide short sale uptick rule Uptick rule
SEC rule that selling short is allowed only on an up tick.
An SEC rule that prohibits the sale of borrowed stock when the last price change in the stock was downward.
* 71% favor a single-stock short sale circuit breaker
* 90% favor making the temporary prohibition of "naked" short sales permanent
* 96% favor public short position reporting similar to long position reporting
"NIRI applauds the SEC for taking up this comprehensive examination of short-selling," said Jeff Morgan, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of NIRI. "NIRI agrees with the Commission that short selling provides important market benefits such as liquidity and pricing efficiency, but that short selling may also be used to illegally manipulate stock prices. NIRI supports a comprehensive evaluation of market stabilizing systems and processes during times of extreme volatility such as some form of short selling uptick rule or circuit breakers. Additionally, NIRI supports equity ownership position transparency - full and frequent ownership disclosure by all institutional investors including long positions, short positions and derivative positions. We plan to include these important survey results in NIRI's upcoming Reg SHO comment letter to the SEC."
About National Investor Relations Institute (NIRI)
Founded in 1969, NIRI is the professional association of corporate officers and investor relations consultants responsible for communications among corporate management, shareholders, securities analysts and other financial community constituents. The largest professional investor relations association in the world, NIRI's more than 4,000 members represent 2,000 publicly held companies and $5.4 trillion in stock market capitalization. For more information, please visit www.niri.org.