This is very interesting and probably not nearly as powerful as it is meant to be. I feel like the SEC believes that banning 'naked' short selling will somehow stem the magnitude of market sell-offs but that is not necessarily the case. This is a fairly 'feel good' action on their part. There are still many ways to create naked and otherwise short positions through the use of fairly basic equity option strategies. It fascinates me that regulators feel the need to intervene in a place where when inefficiencies exist astute market participants usually correct them fairly effectively.
Related Story
SEC makes temporary short-selling rule permanent
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