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Create 2021-06-07-FINRA-Proposing-Significant-Changes-to-Short-Sale-Related-Disclosures.md

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FINRA Regulatory Notice 21-19: New Short Sale Reporting Regime
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| 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/) |
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[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- Report to FINRA account-level short interest (not for publication).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.