SEC Adopts Rule to Increase Transparency Into Short Selling and Amendment to CAT NMS Plan for Purposes of Short Sale Data Collection
summary
The SEC adopted Rule 13f-2 to increase transparency in short sale data as mandated by Congress.
paragraph
The SEC adopted Rule 13f-2, requiring institutional investment managers to report short position and activity data on Form SHO. The data will be aggregated and publicly disseminated via EDGAR on a delayed basis. The rule becomes effective 60 days after Federal Register publication, with compliance due 12 months later.
narrative
The Securities and Exchange Commission (SEC) adopted new Rule 13f-2 to increase transparency in short sale data, as mandated by Section 929X of the Dodd-Frank Act of 2010. The rule requires institutional investment managers exceeding certain thresholds to report short position and activity data on Form SHO. The SEC will aggregate the data and publicly disseminate it via EDGAR on a delayed basis, maintaining the confidentiality of the reporting managers. The SEC also adopted an amendment to the National Market System Plan governing the consolidated audit trail, requiring CAT reporting firms to indicate when they assert the bona fide market making exception. The rule and amendment will become effective 60 days after publication in the Federal Register, with compliance dates set for 12 and 18 months later, respectively. This is a regulatory transparency initiative with no fraud, penalties, or enforcement actions involved.
Classified non-corporate(confidence 99%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Rule 13f-2
Parties
congress directed the sec to enhance transparency of short sellingsec chair gary genslersec in section 929x of the dodd-frank act of 2010
Keywords
shortdatashort salecatplannmsamendmentshort sellingsale datasaletransparency shortsectransparencyshoselling
Exhibits & Attached Documents (3)
Extracted insights
Entities 3
- agency congress directed the sec to enhance transparency of short selling
- agency sec chair gary gensler
- agency sec in section 929x of the dodd-frank act of 2010
Triples 11
- Securities And Exchange Commission adopted new Rule 13f-2
- Congress directed SEC in Section 929X of the Dodd-Frank Act of 2010
- SEC Chair Gary Gensler said Congress directed the SEC to enhance transparency of short selling
- Rule 13f-2 will require institutional investment managers that meet certain thresholds to report short position data on Form SHO
- Commission will aggregate the resulting data by security while maintaining confidentiality of reporting managers
- Commission will publicly disseminate the aggregated data via EDGAR on a delayed basis
- Commission adopted an amendment to the National Market System Plan governing the consolidated audit trail
- Amendment to the NMS Plan will require each CAT reporting firm to indicate use of the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO
- Adopting release for Rule 13f-2 will be published in the Federal Register
- Final rule, Form SHO, and amendment to the CAT NMS Plan will become effective 60 days after publication of the adopting release in the Federal Register
- Compliance date for Rule 13f-2 and Form SHO will be 12 months after the effective date of the adopting release
PDF (from attached: pdf)
Text layers
Extracted body text (2,465c)
The Securities and Exchange Commission today adopted new Rule 13f-2 to provide greater transparency to investors and other market participants by increasing the public availability of short sale related data. Congress directed the SEC in Section 929X of the Dodd-Frank Act of 2010 to promulgate rules to make certain short sale data publicly available. “In the wake of the 2008 financial crisis, Congress directed the SEC to enhance the transparency of short selling of equity securities,” said 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 will require institutional investment managers that meet or exceed certain thresholds to report on Form SHO specified short position data and short activity data for equity securities. The Commission will aggregate the resulting data by security, thereby maintaining the confidentiality of the reporting managers, and publicly disseminate the aggregated data via EDGAR on a delayed basis. This new data will supplement the short sale data that is currently publicly available. Relatedly, the Commission today also adopted an amendment to the National Market System Plan (NMS Plan) governing the consolidated audit trail (CAT). The amendment to the NMS Plan governing the CAT (CAT NMS Plan) will require each CAT reporting firm that is reporting short sales to indicate when it is asserting use of the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO. The adopting release for Rule 13f-2 and related Form SHO, as well as the notice of the amendment to the CAT NMS Plan, will be published in the Federal Register. The final rule, Form SHO, and the amendment to the CAT NMS Plan will become effective 60 days after publication of the adopting release in the Federal Register. The compliance date for Rule 13f-2 and Form SHO will be 12 months after the effective date of the adopting release, with public aggregated reporting to follow three months later, and the compliance date for the amendment to the CAT NMS Plan will be 18 months after the effective date of the adopting release.
OCR text (2,465c · html-text · 99% conf)
The Securities and Exchange Commission today adopted new Rule 13f-2 to provide greater transparency to investors and other market participants by increasing the public availability of short sale related data. Congress directed the SEC in Section 929X of the Dodd-Frank Act of 2010 to promulgate rules to make certain short sale data publicly available. “In the wake of the 2008 financial crisis, Congress directed the SEC to enhance the transparency of short selling of equity securities,” said 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 will require institutional investment managers that meet or exceed certain thresholds to report on Form SHO specified short position data and short activity data for equity securities. The Commission will aggregate the resulting data by security, thereby maintaining the confidentiality of the reporting managers, and publicly disseminate the aggregated data via EDGAR on a delayed basis. This new data will supplement the short sale data that is currently publicly available. Relatedly, the Commission today also adopted an amendment to the National Market System Plan (NMS Plan) governing the consolidated audit trail (CAT). The amendment to the NMS Plan governing the CAT (CAT NMS Plan) will require each CAT reporting firm that is reporting short sales to indicate when it is asserting use of the bona fide market making exception in Rule 203(b)(2)(iii) of Regulation SHO. The adopting release for Rule 13f-2 and related Form SHO, as well as the notice of the amendment to the CAT NMS Plan, will be published in the Federal Register. The final rule, Form SHO, and the amendment to the CAT NMS Plan will become effective 60 days after publication of the adopting release in the Federal Register. The compliance date for Rule 13f-2 and Form SHO will be 12 months after the effective date of the adopting release, with public aggregated reporting to follow three months later, and the compliance date for the amendment to the CAT NMS Plan will be 18 months after the effective date of the adopting release.