TO: All NASD Members and Other Interested Persons
On December 19, 1985, the Securities and Exchange Commission approved a new Article III, Section 41 of the NASD Rules of Fair Practice (SEC Release No. 34-22731). The rule establishes a new requirement for members to maintain a record of their total "short" positions in NASDAQ securities in all customer and proprietary firm accounts and
As long as you have a margin account, leveraged and inverse funds don't matter because you can use margin leverage and short the funds. The leveraged and inverse funds are much safer to manage the risk rather than using margin because unlike leveraged margin positions, the leveraged and inverse funds never go negative price. In that sense, the leveraged and inverse funds are actually safer
SUGGESTED ROUTING
Senior ManagementInstitutionalLegal & ComplianceOptionsTrading
Executive Summary
Given the growing market for over-the-counter (OTC) derivatives, such as OTC options on individual equity securities and stock indexes, and the Securities and Exchange Commission's (SEC) recent approval of increases in option position and exercise limits, the NASD reminds
/**/
Publication Date: June 17, 2025Interpretations are marked in blue background beneath the rule text to which they relate. 15c3-3aExhibit A - Formula for determination of customer and PAB account reserve requirements of brokers and dealers under § 240.15c3-3 CreditsDebits 1.Free credit balances and other credit balances in customers' security accounts
While short positions is legal and should remain so, predatory shorting that harms American companies, it's consumers, and American investors should be abolished. Greater monitoring of the practice and regulatory enforcement to prevent it from occurring is desperately needed. "Dark Pool" trading in particular is should be illegal and have those that participate in it the subject of
Hello FINRA I'm a simple and uneducated ape, I'm fairly new to the market. I have seen verified data that shows companies (such as Melvin Capital and Citadel) funding media outlets to reinforce their short positions on a nearly perfect cyclical basis, I have seen people on social media paid for directly by such companies, and even worse I have companies ravage through money that wasn
I'm afraid these changes do not go nearly far enough. While additional and more timely information is certainly appreciated, I believe what we need is for all short sales to be reported similar to the availability of Level II data. That is, every short sale should have to be recorded and immediately posted with the loan terms, where the shares were loaned from, and through which market it
Hi there, thank you for reading my comment. I support all of these new rules. However, re: rule #1, I would like to see that in conjunction with rule #2, not as an alternative to it. I also believe all short interest data should be reported on a daily basis not just to FINRA but also to the public as this data is crucial to some trading strategies and I believe it is available to institutions but
These rule changes are long overdue - public faith in equity markets represent a vital economic and strategic strength of the US and our position in global finance. There will be specific firms that lobby to oppose these rules for their own selfish near term purposes - but they are ultimately short sighted and against the public interest. Tens of millions of Americans rely on equity markets now
SUGGESTED ROUTING:*
Senior ManagementInstitutionalLegal & ComplianceOperationsSyndicateTrading*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The NASD has taken several actions to eliminate short-sale abuses. Notwithstanding these initiatives, an important segment of market participants, including investors and corporate issuers,
