SEC Sets Effective Date for New Reporting Requirements on Short Sales
The SEC set an effective date of January 2, 2024 for new Exchange Act Rule 13f-2 ("Reporting on gross short position and activity information"). The new rule requires institutional investment managers to report, on new Form SHO, information regarding certain short positions in equity securities and related trading activity. A breakdown of the compliance date for the final rule can be found here.
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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