SEC staff recommend relief for market makers

WASHINGTON (Reuters) - The Securities and Exchange Commission will consider an exemption for hedging activities by exchange and over-the-counter market makers in derivatives on the emergency short sale ban issued on Friday.

SEC staff made the recommendation to the commission late on Friday after the agency imposed a ban on short sales of nearly 800 financial stocks.

(Reporting by Rachelle Younglai; editing by Carol Bishopric)