Exemption From Exchange Act Rule 13f-2 and Related Form SHO
February 07, 2025 6:30 PM EST | Source: Newsfile SEC Press Digest
Washington, D.C.--(Newsfile Corp. - February 7, 2025) - The Securities and Exchange Commission today provided a temporary exemption from compliance with Rule 13f-2 under the Securities Exchange Act and from reporting on Form SHO. As a result of the exemption, filings on initial Form SHO reports from institutional investment managers that meet or exceed certain specified thresholds will be due by Feb. 17, 2026, for the January 2026 reporting period. The effective date for Rule 13f-2 and Form SHO was Jan. 2, 2024, and the compliance date for such rule and form was Jan. 2, 2025, with initial Form SHO filings originally due by Feb. 14, 2025.
Rule 13f-2 requires institutional investment managers that meet or exceed certain specified thresholds to file Form SHO with the Commission within 14 calendar days after the end of each calendar month with regard to certain equity securities via the Commission’s Electronic Data Gathering, Analysis, and Retrieval System (EDGAR). The Commission will publish, on an aggregated basis, certain information regarding each equity security reported by institutional investment managers on Form SHO and filed with the Commission via EDGAR.
“It is important that data collected by the Commission is accurate, complete, and helpful to the market,” said SEC Acting Chairman Mark Uyeda. “This exemption gives filers more time to implement the technical updates required for compliance according to standards that were released only on Dec. 16, 2024, immediately prior to the holidays. Regardless of this exemption, abusive naked short selling as part of a manipulative scheme remains unlawful, and the Commission will use its regulatory tools to combat such illegal activity.”
This exemption will provide industry participants sufficient time to work with Commission staff to address any outstanding operational and compliance questions. This exemption will also provide filers sufficient time to complete implementation of system builds and testing.
Transparency is essential to well-functioning markets. And the Commission has stated the importance of providing more disclosure about short selling. It is also important to enhance the accuracy of the short sale-related data that would ultimately be provided to investors by giving institutional investment managers additional time.
Rule 13f-2 and Form SHO reporting will enhance the transparency of other available short sale-related information. Currently, several self-regulatory organizations (SROs) are providing on their websites daily aggregate short selling volume information for individual equity securities. The SROs are also providing website disclosure on a one-month delayed basis of information regarding individual short sale transactions in all exchange-listed equity securities. Hyperlinks to short sale data provided by specific SROs are available. Further, the SROs are also publishing monthly statistics on short interest in securities that trade on their markets.
Additionally, the Commission publishes on its website failures to deliver data for all equity securities, regardless of the fails level, twice per month.
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