Washington D.C., Oct. 13, 2023 —
The Securities and Exchange Commission as we speak adopted new Rule 13f-2 to supply higher transparency to buyers and different market members by rising the general public availability of brief sale associated information. Congress directed the SEC in Section 929X of the Dodd-Frank Act of 2010 to promulgate guidelines to make sure brief sale information publicly available.
“In the wake of the 2008 financial crisis, Congress directed the SEC to enhance the transparency of short selling of equity securities,” mentioned SEC Chair Gary Gensler. “Today’s adoption will promote greater transparency about short selling both to regulators and the public. This rule addresses Congress’s mandate and improves upon existing sources of short sale-related data in the equity markets. Given past market events, it’s important for the Commission and the public to know more about short sale activity in the equity markets, especially in times of stress or volatility.”
Specifically, Rule 13f-2 would require institutional funding managers that meet or exceed sure thresholds to report on Form SHO specified brief position information and brief exercise information for fairness securities. The Commission will mixture the ensuing information by safety, thereby sustaining the confidentiality of the reporting managers, and publicly disseminate the aggregated information through EDGAR on a delayed foundation. This new information will complement the brief sale information that’s presently publicly available.
Relatedly, the Commission as we speak additionally adopted an modification to the National Market System Plan (NMS Plan) governing the consolidated audit path (CAT). The modification to the NMS Plan governing the CAT (CAT NMS Plan) would require every CAT reporting agency that’s reporting brief gross sales to point when it’s asserting use of the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO.
The adopting launch for Rule 13f-2 and associated Form SHO, in addition to the discover of the modification to the CAT NMS Plan, shall be printed within the Federal Register. The closing rule, Form SHO, and the modification to the CAT NMS Plan will change into efficient 60 days after publication of the adopting launch within the Federal Register. The compliance date for Rule 13f-2 and Form SHO shall be 12 months after the efficient date of the adopting launch, with public aggregated reporting to observe three months later, and the compliance date for the modification to the CAT NMS Plan shall be 18 months after the efficient date of the adopting launch.
