ProShares and Rydex announced that they will not create new shares of their respective short financial funds until further notice.

The 3 ETFs affected include the Rydex Inverse 2x S&P Select Sector Financial ETF (RFN), Short Financials ProShares (SEF) and UltraShort Financials ProShares (SKF).

The fund managers took the step as a result of the emergency action announced by the Securities and Exchange Commission that temporarily prohibits short sales of shares of certain financial companies.

Both managers stated that, unless notified otherwise, shares will be available for redemption by Authorized Participants as normal.

Shares of the three ETFs have continued to trade in their respective markets and closed near NAV on September 24, 2008.