Advisories

SEC Issues Married Put Interpretation

November 2003

The Securities and Exchange Commission has issued its long-awaited Interpretive Release regarding short sales and "married put transactions" (the "Interpretation"). According to the SEC, while married puts can be part of a legitimate hedging strategy (a use they do not wish to discourage), they are "calling attention to abusive married put transactions that ... are used in a scheme to create sham long positions in order to evade Commission rules."