From the SEC's press release:

The Commission voted to propose two approaches to restrictions on short selling. One would apply on a market wide and permanent basis, while the other would apply only to a particular security during severe market declines in that security. They include:

Market-Wide, Permanent Approach

* Proposed Modified Uptick Rule: A market-wide short sale price test based on the national best bid (a proposed modified uptick rule).

* Proposed Uptick Rule: A market-wide short sale price test based on the last sale price or tick (a proposed uptick rule).

Security-Specific, Temporary Approach

* Circuit Breaker: A circuit breaker that would either:

o Ban short selling in a particular security for the remainder of the day if there is a severe decline in price in that security (a proposed circuit breaker halt rule).

o Impose a short sale price test based on the national best bid in a particular security for the remainder of the day if there is a severe decline in price in that security (a proposed circuit breaker modified uptick rule).

o Impose a short sale price test based on the last sale price in a particular security for the remainder of the day if there is a severe decline in price in that security (a proposed circuit breaker uptick rule).

Since the Commission eliminated short sale price tests two years ago, we have seen market conditions and events that differ sharply from those of previous years, said Erik Sirri, Director of the SEC's Division of Trading and Markets. In that time, the Commission has received many requests to reinstate short sale price test restrictions. The proposals we have recommended today are part of an overall effort to seek comment and input from all market participants, analyze and if necessary modify our previous actions, and boost investor confidence.

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Always smart - let's nudge the formerly efficient market just a little more and see exactly when it will break (for insights of what happens when the market is wrong and you are right, we refer you to this).

Paging Mr. Ben N. Dover III for some highly erudite and probing commentaries. Readers can submit their thoughts directly to the SEC here.