FINRA Manual: Contents
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4000. FINANCIAL AND OPERATIONAL RULES
4500. BOOKS, RECORDS AND REPORTS
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4560. Short-Interest Reporting
Past version: effective from Jun 28 2010 - Nov 29 2012.
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(a) Each member shall maintain a record of total "short" positions in all customer and proprietary firm accounts in all equity securities (other than Restricted Equity Securities as defined in Rule 6420) and shall regularly report such information to FINRA in such a manner as may be prescribed by FINRA. Reports shall be made as of the close of the settlement date designated by FINRA. Reports shall be received by FINRA no later than the second business day after the reporting settlement date designated by FINRA.
(b) For purposes of this Rule:
(1) "short" positions to be reported are those resulting from "short sales" as that term is defined in Rule 200(a) of SEC Regulation SHO, with the exception of positions that meet the following requirements:
(A) any sale by any person, for an account in which he has an interest, if such person owns the security sold and intends to deliver such security as soon as is possible without undue inconvenience or expense;
(B) any sale of a security (except a sale to a stabilizing bid complying with Rule 104 of SEC Regulation M) effected with the approval of an exchange which is necessary to equalize the price of such security thereon with the current price of such security on another national securities exchange which is the principal exchange market for such security;
(C) any sale of a security for a special arbitrage account by a person who then owns another security by virtue of which he is, or presently will be entitled to acquire an equivalent number of securities of the same class as the securities sold; provided such sale, or the purchase which such sale offsets, is effected for the bona fide purpose of profiting from a current difference between the price of the security sold and the security owned and that such right of acquisition was originally attached to or represented by another security or was issued to all the holders of any such class of securities of the issuer;
(D) any sale of a security registered on, or admitted to unlisted trading privileges on, a national securities exchange effected for a special international arbitrage account for the bona fide purpose of profiting from a current difference between the price of such security on a securities market not within or subject to the jurisdiction of the United States and on a securities market subject to the jurisdiction of the United States; provided the seller at the time of such sale knows or, by virtue of information currently received, has reasonable grounds to believe that an offer enabling him to cover such sale is then available to him in such foreign securities market and intends to accept such offer immediately; and
(E) any sale by an underwriter, or any member of a syndicate or group participating in the distribution of a security, in connection with an over-allotment of securities, or any lay-off sale by such a person in connection with a distribution of securities through rights or a standby underwriting commitment.
(2) the term "customer" includes a broker-dealer.
Amended by SR-FINRA-2010-003 eff. June 28, 2010.
Amended by SR-FINRA-2008-057 eff. Dec. 15, 2008.
Amended by SR-FINRA-2008-033 eff. Dec. 15, 2008.
Amended by SR-NASD-2006-131 eff. Sept. 6, 2007.
Amended by SR-NASD-2007-047 eff. July 6, 2007.
Amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-2005-112 eff. July 3, 2006.
Amended by SR-NASD-2005-001 eff. Jan. 7, 2005.
Amended by SR-NASD-2002-178 eff. Dec. 16, 2002.
Amended by SR-NASD-94-67 eff. May 1, 1995.
Amended by SR-NASD-87-23 eff. Aug. 31, 1987.
Adopted by SR-NASD-85-34 eff. Jan. 20, 1986.
Selected Notices: 85-77, 85-87, 86-4, 86-15, 86-61, 87-15, 95-8, 03-08, 07-24, 07-31, 08-57, 10-26.