SEC Proposes Short Sale Disclosure Rule, Order Marking Requirement, and CAT Amendments

The Securities and Exchange Commission today announced that it has voted to propose changes that would provide greater transparency to investors and regulators by increasing the public availability of short sale related data. New Exchange Act Rule 13f-2 and the corresponding Form SHO would require certain institutional investment managers to report short sale related information to the Commission on a monthly basis. The Commission then would make aggregate data about large short positions, including daily short sale activity data, available to the public for each individual security. “Proposed Rule 13f-2 would make aggregate data about large short positions available to the public for individual equity securities,” said SEC Chair Gary Gensler.