The Theatre of the Absurd: SEC Extends Short-Selling Emergency Order

SEC Chairman Chris Cox is on record as saying that none of the 19 stocks contained on the list of stocks singled out for protection against naked short-selling, through an emergency order of the SEC, were actually the victim of naked short sellers. Further, regs against naked short-selling, before the new Chris Cox order, were already on the books.

So what to do with this new order that is redundant and applies to stocks that are not impacted by naked short-sellers? Why extend the absurd order, of course.

The Securities and Exchange Commission voted to extend the temporary rules it put in place to restrict the naked short-selling, that doesn't exist, on the 19 stocks.

The SEC commissioners didn't take additional steps to expand the number of stocks affected by the rules or make them permanent, which some have called for.

The temporary rules were set to expire Tuesday, and the SEC extended the order until Aug. 12.