On 4 August 2021, FINRA requested extended comment period on short sale reporting changes.
- FINRA issued Regulatory Notice 21-19: FINRA requests comment on short interest position reporting enhancements and other changes related to short sale reporting.
Short Sale Reporting Proposal
- Modifications proposed to FINRA short interest reporting requirements, to consolidate publication of short interest data reported to FINRA for both listed, unlisted securities.
- Considered changes to data fields firms required to complete, additional data points.
- Additional data points included proprietary, customer account categorization; account-level position data; synthetic short positions; loan obligations from arranged financing;
- Also, total shares outstanding (TSO) and public float; and new threshold security field.
- Requiring firms report short interest data more frequently (daily/weekly) considered.
- Reduced processing time involved in disseminating short interest data was proposed.
- New rule proposed to require that participants of a registered clearing agency report to FINRA information on allocations to correspondent firms of fail-to-deliver positions.
- Comments on proposed enhancements to short sale reporting, due by 30 September 2021.