Regulatory Notice 17-43

Guidance on Reporting Short Interest Positions Held in Master/Sub-Accounts or Parent/Child Accounts

Summary

FINRA is issuing this Notice to reiterate that firms must report short positions in each individual firm or customer account on a gross basis under FINRA Rule 4560. Therefore, firms that maintain positions in master/sub-accounts or parent/child accounts must calculate and report short interest based on the short position in each sub- or child account. FINRA has observed that some firms erroneously report a net short interest position for each account grouping, i.e., by parent or master account, rather than reporting on a gross basis for each account, i.e., by child or sub-account.

Questions concerning this Notice or FINRA Rule 4560 should be directed to:

  • Yvonne Huber, Vice President, Market Regulation Department, at (240) 386-5034;
  • Lisa Horrigan, Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8190; or
  • Cara Rosen, Counsel, OGC, at (202) 728-8852.