SEC Adopts Amended Rule 105 of Regulation M

The SEC adopted a final rule that amends Rule 105 of Regulation M, the anti-manipulation rules concerning the offering of securities.  Rule 105 governs short sales effected prior to pricing the offering.  The amendment is tailored to end the progression of strategies designed to conceal the covering of restricted period short sales with offered securities.  The amendment eliminates the covering element of the former rule.