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4.6 SEC Study and Report on Short Selling

<< Title IV Overview

4.6 SEC Study and Report on Short Selling

 

 


4.6.       SEC Study and Report on Short Selling. The Division of Risk, Strategy and Financial Innovation of the SEC is required to conduct a study on: (i) the state of short selling on national securities exchanges and over-the-counter ("OTC") markets (with particular focus on the impact of recent rule changes and the incidence of failure to deliver shares sold short or delivery of shares on the fourth day following the short sale transaction); (ii)(a) the feasibility of reporting publicly short sale positions of publicly-traded securities or, alternatively, filing such reports only to the SEC and Financial Institution Regulatory Agency ("FINRA"); and (ii)(b) the feasibility of a voluntary pilot program in which public companies agree to have all trades of their shares marked "short," "market maker short," "buy," "buy-to-cover," or "long" and reported in real time through the Consolidated Tape.  The results of the study conducted under clause (i) immediately above must be submitted to Congress within 2 years of enactment of the Act while the results of the studies conducted under clause (ii) immediately above would need to be submitted within 1 year of enactment of the Act. [§417]