SEC allows temporary exemption for short selling reporting rules
10 February 2025 US
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The US Securities and Exchange Commission (SEC) has provided a temporary exemption from compliance with Rule 13f-2 and from reporting on Form SHO.
As a result of the exemption, filings on initial Form SHO reports from institutional investment managers that meet or exceed certain specified thresholds will be due by 17 February 2026, for the January 2026 reporting period.
Previously, the compliance date for Rule 13f-2 and Form SHO was 2 January 2025, with the initial Form SHO filings originally due by 14 February 2025.
The announcement follows the Investment Company Institute’s (ICI’s) request for no-action relief on short sell reporting rules until additional interpretive guidance on compliance can be provided.
In its request, the ICI stated that without this further guidance, it could negatively impact the quality and accuracy of the data reported to the commission.
Rule 13f-2, under the Securities and Exchange Act, requires institutional investment managers that meet or exceed certain specified thresholds to file Form SHO with the SEC within 14 calendar days after the end of each calendar month, with regard to certain equity securities via the Commission’s Electronic Data Gathering, Analysis, and Retrieval System (EDGAR).
The Commission will publish, on an aggregated basis, certain information regarding each equity security reported by institutional investment managers on Form SHO and filed with the SEC via EDGAR.
According to the SEC, this exemption will provide industry participants sufficient time to work with the commission staff to address any outstanding operational and compliance questions.
This exemption will also provide filers sufficient time to complete implementation of system builds and testing.
Commenting on the decision, SEC acting chairman, Mark Uyeda, says: “It is important that data collected by the commission is accurate, complete, and helpful to the market.
“This exemption gives filers more time to implement the technical updates required for compliance according to standards that were released only on 16 December 2024, immediately prior to the holidays.
“Regardless of this exemption, abusive naked short selling as part of a manipulative scheme remains unlawful, and the Commission will use its regulatory tools to combat such illegal activity.”
As a result of the exemption, filings on initial Form SHO reports from institutional investment managers that meet or exceed certain specified thresholds will be due by 17 February 2026, for the January 2026 reporting period.
Previously, the compliance date for Rule 13f-2 and Form SHO was 2 January 2025, with the initial Form SHO filings originally due by 14 February 2025.
The announcement follows the Investment Company Institute’s (ICI’s) request for no-action relief on short sell reporting rules until additional interpretive guidance on compliance can be provided.
In its request, the ICI stated that without this further guidance, it could negatively impact the quality and accuracy of the data reported to the commission.
Rule 13f-2, under the Securities and Exchange Act, requires institutional investment managers that meet or exceed certain specified thresholds to file Form SHO with the SEC within 14 calendar days after the end of each calendar month, with regard to certain equity securities via the Commission’s Electronic Data Gathering, Analysis, and Retrieval System (EDGAR).
The Commission will publish, on an aggregated basis, certain information regarding each equity security reported by institutional investment managers on Form SHO and filed with the SEC via EDGAR.
According to the SEC, this exemption will provide industry participants sufficient time to work with the commission staff to address any outstanding operational and compliance questions.
This exemption will also provide filers sufficient time to complete implementation of system builds and testing.
Commenting on the decision, SEC acting chairman, Mark Uyeda, says: “It is important that data collected by the commission is accurate, complete, and helpful to the market.
“This exemption gives filers more time to implement the technical updates required for compliance according to standards that were released only on 16 December 2024, immediately prior to the holidays.
“Regardless of this exemption, abusive naked short selling as part of a manipulative scheme remains unlawful, and the Commission will use its regulatory tools to combat such illegal activity.”
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