Regulatory Alerts2022-02-25
Short Position and Short Activity Reporting by Institutional Investment Managers
The Securities and Exchange Commission proposes a new rule requiring institutional investment managers meeting specified thresholds to report monthly short position and short activity data for equity securities on a dedicated Form SHO. The proposal also establishes a new “buy to cover” order marking requirement under Regulation SHO and amends the Consolidated Audit Trail plan to mandate reporting of related order markings and bona fide market making exceptions. By aggregating and publishing this short sale data, the Commission aims to enhance market transparency, improve regulatory oversight of short selling, and strengthen investor protection during periods of heightened volatility.
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