Goldman Sachs Group Inc
The U.S. Securities and Exchange Commission had asked for comments on a proposal to reinstate the uptick rule, under which investors can short a stock only after it had moved higher.
In a short sale, an investor sells borrowed stock in anticipation of a price decline that will allow him to repurchase the shares at a lower price.
Some lawmakers and financial industry executives say short selling has worsened the financial crisis and driven down share prices.
Goldman and Vanguard were among several companies and exchange operators opposing new restrictions on short sales.
Other investors, including T.Rowe Price, submitted letters expressing support for the new rules.
(Reporting by Steve Eder; additional reporting by Ajay Kamalakaran in Bangalore; Editing by Dan Lalor and John Wallace)