The staff of the U.S. Securities and Exchange Commission on Wednesday issued recommendations to restrict short selling. The full commission is expected to debate the issue shortly and vote on whether to propose the recommendations later today.
* SEC staff recommends updated uptick rule proposal which would apply to all stocks
* SEC staff recommends bid test, where shorting would only be allowed on 'up-bid'
* SEC staff recommends 3 circuit breakers to curb short selling
* One circuit breaker would temporarily ban short selling of stock for rest of day if stock fell by 10 percent
* Another circuit breaker would trigger the updated uptick rule proposal for the rest of the day for the stock
* Third circuit breaker proposal would trigger the bid test for the rest of the day for the stock
(Reporting by Rachelle Younglai)