FINRA encourages all interested Apes to comment on this request for comment. Comments must be received by August 4, 2021.
Comments must be submitted through one of the following methods:
- online using FINRA’s comment form for this Notice;
- emailing comments to [email protected]; or
- mailing comments in hard copy to: Jennifer Piorko Mitchell
Office of the Corporate Secretary
1735 K Street, NW
Washington, DC 20006-1506
Parties should submit in their comments only personally identifiable information, such as phone numbers and addresses, that they wish to make available publicly. FINRA, however, reserves the right to redact, remove or decline to post comments that are inappropriate for publication, such as vulgar, abusive or potentially fraudulent comment letters. FINRA also reserves the right to redact or edit personally identifiable information from comment submissions.
Background and Discussion
FINRA currently collects short sale-related information from firms to support FINRA’s oversight of member compliance with Regulation SHO3 and other short sale obligations and to provide market participants with insight into short sale activity and position information. Pursuant to FINRA Rule 4560 (Short-Interest Reporting), firms are required to report to FINRA their aggregate short position in each equity security twice a month.4 As described further below, the short interest data collected by FINRA include the reporting firm’s current aggregate short interest position for the security and any short position changes at the firm since the prior reporting period, among other things. For over-the-counter equity securities, FINRA aggregates and publishes the collected short interest data (aggregated across all firms, per symbol) on the FINRA website along with additional FINRA-calculated metrics relating to short sale activity in the security (e.g., days to cover5).6 For exchange-listed securities, FINRA provides the reported short interest data to the applicable listing exchange for processing and publication.7
FINRA is considering whether amendments to its short interest reporting and dissemination program would be appropriate to improve the regulatory and public utility of the information. FINRA also is considering whether any changes to other aspects of its short sale regulatory program would be beneficial....
This one is a long one, but I think it is worth Ape's time to read and comment before August 4th!
TL:DR - Commenting on the harm of naked shorts should be like voting your shares!