Regulation SHO


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Regulation SHO

An SEC regulation, adopted in 2005, restricting naked short selling. Naked short selling involves selling shares one has neither borrowed nor made arrangements to borrow. The regulation requires these brokers and short sale buyers to abide by a "locate" requirement and a "close-out" requirement. The locate requirement forces brokers to have reasonable grounds to believe that an equity security can be borrowed; the broker must document this prior to the security's sale. With some exceptions, the close-out requirement means that brokers who have failed to deliver a short-sold security for 13 days must purchase similar securities and present those instead. Brokers failing to do this may not engage in naked short selling until the position is closed. The rule also requires stock exchanges to publish daily a list of companies whose stock has failed to deliver over a certain threshold. See also: Short selling, Open fail, Threshold security.
References in periodicals archive ?
4 million for violating Regulation SHO, FINRA's short interest reporting rule and for related supervisory failures.
net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has initiated coverage on Adaptive Media after releasing the latest short sale data through September 29, 2014.
It then discusses the impact of the market crisis beginning in 2007 on short sale regulation, the current debate over the Securities and Exchange Commission's ("SEC") revisions to Regulation SHO, and a general issue of public perception of risk and regulatory policy in complex financial markets.
Regulation SHO requires exchanges to publish daily lists of firms with FTDs that exceed a pre-determined threshold.
Their violations are related to Regulation SHO concerning short-selling, the NYSE's regulatory organization said in a statement.
75 million for violating Regulation SHO (Reg SHO) and failing to properly supervise short sales of securities and marking of sale orders.
5 million for failing to establish, maintain and enforce supervisory systems and procedures related to Regulation SHO and other areas.
net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has initiated coverage on Top Shelf Brands (OTC: TEMN) after releasing the latest short sale data through August 12, 2014.
WASHINGTON -- The Financial Industry Regulatory Authority (FINRA) announced today that it has fined UBS Securities LLC $12 million for violating Regulation SHO (Reg SHO) and failing to properly supervise short sales of securities.
net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has initiated coverage on Table Trac (OTC: TBTC) after releasing the latest short sale data through July 29, 2014.
Cutler Securities also had significant regulatory and supervisory deficiencies relating to its short sales, including a history of failing to comply with Regulation SHO by obtaining locates and properly marking order tickets, and a failure to comply with SEC Emergency Orders.
The Company believes that partnering with ShareIntel is just one initiative that will help protect shareholder value by allowing the Company to better monitor trading activity, including potential violations of SEC Regulation SHO, which governs stock and option share locate, close out, and fail to deliver requirements.

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