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(Reuters) - Securities regulators will consider new short sale restrictions at an open meeting next week, a person familiar with regulators' plans said on Friday.
The Securities and Exchange Commission is expected to meet on Wednesday to vote on rules that would restrict short selling in a company's stock if that stock fell by more than a certain percentage such as 10 percent, another person familiar with the SEC plan said.
The SEC proposed a number of measures last year to rein in short selling, where investors bet the stock's price will fall.
Lawmakers and bank executives blamed short selling for contributing to the downfall of now-defunct investment banks Lehman Brothers and Bear Stearns.
The agency proposed restrictions that would apply across equity markets as well as curbs that would only apply if a stock fell precipitously.
The SEC is expected to consider a "circuit breaker" measure that would trigger a so-called passive bid test, which would only allow short selling above the national best bid, one of the sources said. The sources requested anonymity because the meeting has not been made public.
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