diff --git a/Regulations/FINRA-Regulatory-Notice-21-19/2021-06-07-FINRA-Proposing-Significant-Changes-to-Short-Sale-Related-Disclosures.md b/Regulations/FINRA-Regulatory-Notice-21-19/2021-06-07-FINRA-Proposing-Significant-Changes-to-Short-Sale-Related-Disclosures.md new file mode 100644 index 0000000..dd6df2d --- /dev/null +++ b/Regulations/FINRA-Regulatory-Notice-21-19/2021-06-07-FINRA-Proposing-Significant-Changes-to-Short-Sale-Related-Disclosures.md @@ -0,0 +1,44 @@ +FINRA Regulatory Notice 21-19: New Short Sale Reporting Regime +============================================================== + +| Author | Source | +| :-------------: |:-------------:| +| [u/dlauer](https://www.reddit.com/user/dlauer/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nuidlk/finra_regulatory_notice_2119_new_short_sale/) | + +--- + +[News 📰 | Media 📱](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22News%20%F0%9F%93%B0%20%7C%20Media%20%F0%9F%93%B1%22&restrict_sr=1) + +Hi everyone, + +My apologies for not being more active the last two weeks or so - life has a tendency to get in the way. But part of that involves something that I'm very excited to announce on here, hopefully in another week or two. + +Today I want to call your attention to FINRA's most [regulatory notice - 21-19](https://www.finra.org/rules-guidance/notices/21-19). + +This is clearly in response to the volatility involving GME and AMC, amongst others. FINRA is proposing some very significant changes to short-sale related disclosures. This is a big set of changes, and it looks very encouraging to me. The headlines are: + +- Consolidation of short interest data publication, centralized on the FINRA website + +- Changes to the content of short interest data + + - Require firms to segregate short interest held in proprietary accounts vs that held in customer accounts. + + - Report to FINRA account-level short interest (not for publication). + + - Report synthetic short positions. Interestingly they only note options contracts, and do not include security-based swaps. They are asking for comments on this. + + - Loan obligations from arranged financing to better reflect actual short sentiment. + + - Total shares outstanding and the public float. + +- FINRA is considering reducing reporting timeframe to daily or weekly, and is asking for comments on this. + +- Information on allocations of FTD positions - a daily report of FTD allocations at the security level, with applicable closeout obligation. This would not be for publication, but to allow FINRA to conduct more effective investigations. + +- They're asking for comments on whether to create a reporting framework around stock lending activity. + +If you visit the page I linked above, you can see the full details of the regulatory notice, and also all of FINRA's questions for public comment. + +Submitting a comment letter can be a very effective way of advocating for change and showing FINRA that there is demand for a far more rigorous disclosure regime. The best comment letters are concise, well cited with evidence to back up claims, and unemotional. I know this is a hot button topic, but my feeling is that FINRA is trying to figure out what to do here, and I would urge you to engage them in good faith. + +Please let me know if you have any questions, I'll do my best to respond to as many as I can.