Regulatory Notice 12-38

SEC Approves Amendments to FINRA’s Short-Interest Reporting Rule

Effective Date: November 30, 2012

Executive Summary

The SEC approved amendments to FINRA Rule 4560 (Short-Interest Reporting). The amendments: (1) codify the requirement that member firms report only “gross” short interest existing in each proprietary and customer account (rather than net positions across accounts); (2) clarify that member firms’ short-interest reports must reflect only those short positions that have settled or reached settlement date by the close of the FINRA-designated reporting settlement date; and (3) delete certain existing exceptions to the rule.

 

The text of the rule can be found in the online FINRA Manual.

 

Questions regarding this Notice should be directed to:

• The Legal Section, Market Regulation, at (240) 386-5126; or
• The Office of General Counsel at (202) 728-8071.