Effective November 30, 2012, FINRA has amended its short-interest reporting rule. The rule requires that member firms maintain records of short positions in non-restricted equity securities in customer and firm accounts and report the information to FINRA.
The change eliminates three exceptions to the rule for stabilizing activity, domestic arbitrage, and international arbitrage. Exceptions still remain for certain other situations.
The change also codifies that short positions must be reported for each account on a gross basis (as opposed to a net basis). The change clarifies that firms are only required to report short sales that have settled or that have reached their settlement date.
Source: FINRA Regulatory Notice 12-38
This alert applies to the Series 24.