If Short selling financials is banned then what happens to the UltraShort Financials ProShares (SKF)?

SKF Do they have to cancel this ETF or something?

It’s halted.

The financial technology for producing UltraShort Financials can be with futures, which aren’t affect by the change (AFAIK). So the fund can exist even if the stocks can’t be shorted. However, a regulation may simply prohibit use of this fund; I’m not sure if it was written this way.

how about option deal’s ability to delta hedge their positions?

market makers are not affected. I believe that would include those handling ETF trades.

Rydex, does that mean market makers are allowed to short? Just general public? If true, I can almost tolerate it now.

Market makers I am pretty sure can short. I read over the summary on the SEC sight this morning. They have to be able.