SEC Poised to Exempt Market-Makers From `Naked-Short' Sale Ban

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July 18 (Bloomberg) -- The U.S. Securities and Exchange Commission is poised to exempt market makers in stocks from an emergency rule aimed at preventing manipulation in shares of Fannie Mae, Freddie Mac and 17 Wall Street firms.

The agency's staff, after conference calls to discuss the rule that limits the ability of traders to use abusive tactics when betting on a drop in share prices, agreed to requests by exchanges and brokerages to modify the terms.