SEC Seeks Public Comment on Short Sale Disclosure

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The Securities and Exchange Commission is now accepting comments on two short selling disclosure requirements, in order to inform an agency study by the Dodd-Frank Act.

Under the Dodd-Frank Act provision, the study must evaluate two possible disclosure systems.      The first, a “transactions reporting regime,” would add short sale-related marks to the consolidation tape, which is the electronic system that constantly reports the price and volume of stock sales.    This first proposed regime would initially be tested out through a voluntary pilot program.

The second proposal is for a “position reporting regime,” which would mean real-time reporting of investors’ short positions to the public or only to regulators.

The SEC seeks comments on the current uses of short selling in securities markets and whether information on these transactions is adequate or not.   The agency also seeks input on the “feasibility, benefits, and costs” of the two possible new systems.

The public comment period will remain open for 45 days following publication of the request in the Federal Register.    The SEC’s Division of Risk, Strategy and Financial Innovation must submit the study to Congress by July 21.

Anna Timone (195 Posts)


Comments

  1. umanetu says:

    Hi Anna, thanks for the info. Does it only affect stock market or futures also?

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