As part of its continued effort to monitor and understand short selling, the SEC decided in October to extend until August 1, 2009 short sale and position reporting requirements first enacted in an emergency order issued on September 18.  The agency intends to use the information in reports to craft and evaluate regulation.  Hedge funds, however, have been nearly unanimous in their opposition to short reporting.  In this second part of a two-part series, we explain the background, content and practical implications of the new short sale rules, and the likely future course of rulemaking on the topic.