SEC says extends short sale ban on financial stocks

Wed Oct 1, 2008 8:12pm EDT

A trader watches screens as he works on the floor of the New York Stock Exchange, September 29, 2008. REUTERS/Brendan McDermid

A trader watches screens as he works on the floor of the New York Stock Exchange, September 29, 2008.

Credit: Reuters/Brendan McDermid

(Reuters) - The U.S. Securities and Exchange Commission on Wednesday said it would extend its existing short sale ban on financial stocks while Congress completes work on financial bailout legislation. The ban had been scheduled to expire on Thursday night.

* Said its short sale ban on financial stocks will now expire on the third business day after U.S. legislation is enacted, and will not be extended beyond October 17.

* Said it would also extend a short sale disclosure requirement through October 17.

* Said it would also extend a rule to curb abusive short selling through October 17.