Since the beginning of the year, the Financial Industry Regulatory Authority (FINRA) has fined several financial institutions hundreds of thousands US dollars for violation of the Regulation SHO.
- January – Normura Securities International, Inc. – US$ 100,000
- June – Two entities of Merrill Lynch – US$ 11 million
- July – OZ Management LP – $4.25 million
- August – StockCross Financial Services, Inc. – US$ 800,000
Just to name a few.
If your role requires you to comply with SEC’s SHO regulations governing short selling activities, then Exchange Data International can provide you with daily reported short sale trade data, also known as Threshold Securities Listings.
Definition of a Threshold Securities List
Threshold Securities Listings detail daily market settlement system failures (or ‘fails’). They are published in compliance with SEC regulations.
The criteria for inclusion of a security on a Threshold List
Over a period of 5 consecutive days a security must have:
- A total number of ‘fails to deliver’ exceeding 10,000 shares
- A total number of ‘shares that have failed to deliver at least equal to .5% of the issuer’s total outstanding shares
- Been listed on a similar list by a self-regulatory organization
If you would like to find out more about this service or even try it, please contact our sales team.