SEC adopts Rule 13f-2 to increase transparency into Short-Selling
The SEC adopted new Rule 13f-2 to provide greater transparency into Short-Selling. Rule 13f-2 will require institutional investment managers that meet or exceed certain thresholds to report on Form SHO via EDGAR specified short position data and short activity data for equity securities. SEC will subsequently aggregate and publish certain data collected.
The filing thresholds for reporting issuers will be as follows: a monthly average of daily gross short positions of (i) $10 million or (ii) a monthly average position of 2.5% of issuer’s shares outstanding, and; for non-reporting issuers: $500,000 at the close of any settlement date during calendar month.
The deadline to submit the short-sale data will be 14 calendar days after each calendar month.
Rule 13f-2 and Form SHO will become effective 60 days following the date of publication of the adopting release in the Federal Register, while the compliance date for Rule 13f-2 and Form SHO will be 12 months after the effective date of the adopting release, with public aggregated reporting to follow 3 months later.
The Final Rule can be found at https://www.sec.gov/files/rules/final/2023/34-98738.pdf