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SR-FINRA-2020-041

Rule Filing Status:  Approved

Rule change to adopt FINRA Rule 4111 (Restricted Firm Obligations) and FINRA Rule 9561 (Procedures for Regulating Activities Under Rule 4111) to address firms with a significant history of misconduct.

Victor Vespertino Jr Comment On Regulatory Notice 21-19

To whom it may concern, Yes, I believe daily or even weekly reporting of short interest positions would be a step in the right direction providing retail investors confidence that the markets can indeed work for them also. I think it would be extremely useful if entities were required to report synthetic short positions if only to make market makers more honest and not let them overleverage thus cause serious destabilization in the markets.

Josef Grey Comment On Regulatory Notice 21-19

Dear FINRA Committee members, It is this commenter's genuine hope that short selling is banned as it serves counter-purpose to the two primary functions of the Stock Market, Capital Allotment, and Price Discovery. As such an act would likely remove the need for FINRA, and it is unjust to request this forum to consider self-destruction. Instead, this comment hopes to serve as a basic appeal for the fair, accurate, and timely reporting of Short sales, cumulate short positions, individual ticker short interest, and options-implied float.

Jesse Jewkes Comment On Regulatory Notice 21-19

FINRA reporting should fully cover all positions held in publicly traded companies. The reporting period should follow the standard settlement period. All reporting should be made available to the public within 2 hours of market close on a daily basis. All positions, including short positions should be required to be included without exception. Failure to accurately disclose a short position in the allocated reporting period should result in an immediate penalty.

Joseph Bumstead Comment On Regulatory Notice 21-19

We need much stronger regulation, this could be a step in the right direction. Here are some suggestions for that regulation: - Make the time to deliver a share to its buyer legally 3 days. That's right, 3, give them a bit of leeway. - Remove all the extra extensions. Instead, we allow them to roll for another 3 days. They _must_ do this indefinitely, until they locate and deliver the stock.