SEC Delays Compliance Date for Short Sale Reporting
The SEC granted a temporary exemption to institutional investment managers from certain short-sale reporting requirements. The exemption delays compliance until January 2, 2026, to allow firms more time for system implementation and testing.
The short-sale reporting requirements under Rule 13f-2 ("Reporting by institutional investment managers regarding gross short position and activity information") requires institutional investment managers to report, on new Form SHO, information regarding certain short positions in equity securities and related trading activity. "Form SHO reports for the January 2026 reporting period would be required to be filed within 14 calendar days after the end of January 2026."
As previously covered, new Rule 13f-2 is intended to provide greater transparency by implementing Section 13(f)(2) ("Periodical and other reports") of the Exchange Act, which requires the SEC to adopt rules "for the public disclosure of [various information as to] short sales of each security and any additional information." The Section states: "At a minimum, such public disclosure shall occur every month."
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