The Alberta Securities Commission has extended an order temporarily prohibiting short sales of certain financial sector securities listed on the Toronto Stock Exchange.

The extended order prohibits, with certain exceptions, short selling of common shares of certain financial sector issuers until 11:59 p.m., Oct. 8.

On Sept. 18, the United States Securities and Exchange Commission temporarily banned short selling of securities in numerous financial firms, including some that are listed on stock exchanges in both the United States and Canada. On Sept. 19, the Ontario Securities Commission in its role as the lead regulator of the TSX, along with the ASC and other members of the Canadian Securities Administrators, issued parallel orders imposing similar restrictions regarding certain listed financial issuers.

The SEC extended its order on Oct. 1. The OSC extended its temporary ban on Oct. 3, and the ASC has similarly extended its temporary order.

Both the SEC and Canadian orders are expected to expire at 11:59 p.m., Oct. 8., three business days after the U.S. Emergency Economic Stabilization Act of 2008 becomes law.

The Canadian temporary bans prevent the possibility of Canadian markets being used to avoid the SEC orders by banning the short selling of Canadian securities that are also listed on a U.S. stock exchange

The issuers affected by the extended ASC order are: Bank of Montreal, Bank of Nova Scotia, CIBC, Fairfax Financial Holdings Ltd., Kingsway Financial Services Inc., Manulife Financial Corp., Quest Capital Corp., Royal Bank of Canada, Sun Life Financial Inc., Thomas Weisel Partners Group Inc., Toronto-Dominion Bank, and Merrill Lynch & Co., Canada Ltd.