FINRA – Requests Comment on Short Interest Position Reporting Enhancements and Other Changes Related to Short Sale Reporting

June 4, 2021 – FINRA requested comment on potential enhancements to short sale reporting program. Proposed enhancements to its short interest position reporting rules, FINRA Rule 4560.

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 and unlisted securities. Considered changes to data fields firms required to complete. Additional data points included proprietary, customer account categorization, account-level position data, synthetic short positions, loan obligations from arranged financing, total shares outstanding (TSO), public float, and new threshold security field.

Requiring firms to report short interest data more frequently (daily/weekly) is being considered. Reduced processing time involved in disseminating short interest data was proposed. The 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 August 4, 2021.

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