The Securities and Exchange Commission is now accepting comments on two short selling disclosure requirements, in order to inform an agency study by the Dodd-Frank Act, the Commission said today in a statement.
Under the provision, the study must evaluate two possible disclosure systems. The first, a “transactions reporting regime,” would add short sale-related marks to the consolidated tape, which is the electronic system that constantly reports the price and volume of stock sales.This first proposed regime would initially be tested out through a voluntary pilot program. The second proposal is for a “position reporting regime,” which would mean real-time reporting of investors' short positions to the public or only to regulators.
The SEC requests comments on the current uses of short selling in securities markets and whether information on these transactions is adequate or not. The agency also seeks input on the “feasibility, benefits, and costs” of the two possible new systems.
Comments will be accepted for 45 days after the request is published in the Federal Register. The SEC's Division of Risk, Strategy and Financial Innovation must submit the study to Congress by July 21.
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