06.09.21
FINRA Proposes New Rules on Short Positions, Stock Loans
by: Katanga Johnson
FINRA has proposed changes to its short-interest reporting requirements in a bid to make information more useful. The proposed changes to Rule 4560 would increase the frequency of short-interest reports from twice a month to weekly or even daily. The change would require clearing firms to report synthetic short exposure in firm and customer accounts. The changes would also require clearing firms to report to FINRA certain information on the stock loans that facilitate short bets “for regulatory purposes, but with an eye toward eventual public dissemination,” amid other changes, said the watchdog.
Read the full article on Reuters.