Experts to Examine Efforts to Curb Market Manipulation by Stemming Abusive Naked Short Selling Activity

WASHINGTON (November 17, 2005)—The North American Securities Administrators Association, Inc. (NASAA) today announced plans to host a public forum to explore possible market manipulation through naked short selling activity. The “NASAA Listens” Forum is scheduled for November 30 from 1 p.m. to 3 p.m. at the Paris Ballroom of the Sofitel Lafayette Square Hotel, 806 15th Street NW, in Washington, D.C.

“NASAA commends the SEC for its efforts to address short-selling abuses through Regulation SHO and we encourage the agency to consider additional measures to limit the detrimental impact of abusive naked short-selling on the stock of small businesses, the entrepreneurial engines that drive our nation’s economy,” said NASAA President and Wisconsin Securities Administrator Patricia D. Struck.

Naked short selling refers to a stock transaction in which the seller agrees to sell shares of stock that he or she neither owns nor has borrowed in time to make delivery to the buyer within the standard three-day settlement period. When done in large volumes, this sales tactic can be used to manipulate a stock’s share value while allowing the seller to profit. The SEC adopted Regulation SHO in 2004 to update short-sale regulation and, in part, to address problems associated with abusive naked short selling transactions. Industry compliance with Reg SHO began in January and in May the SEC launched a pilot program to determine the effectiveness of the regulation.

“Since the pilot program has reached the midway point, we believe this Forum offers a timely opportunity for a thorough discussion of the effectiveness of Regulation SHO from a variety of perspectives,” Struck said.

The “NASAA Listens” Forum will bring together a panel of leading financial and academic experts to examine problems associated with abusive naked short selling and the impact of Regulation SHO on naked short-selling transactions.

The Forum is free and open to the public on a first come, first serve basis. To reserve a seat, please contact Lonnie Martin, at 202-737-0900 or lm@nasaa.org, by November 28. NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico.

For More Information:
Bob Webster
Director of Communications
202-737-0900