On August 9, the Securities and Exchange Commission announced the issuing of a Risk Alert to help market participants detect and prevent options trading that circumvents an SEC short-sale rule. This alert was in response to SEC examiners observing options trading strategies that appear to evade certain requirements of the short-sale rule, known as Regulation SHO. Regulation SHO tightened requirements for short sales, which involve sales of borrowed securities. You can read more about the activities that the SEC staff has observed on the SEC website.