News & Analysis as of

Short Sales

Morgan Lewis

Temporary Reprieve for New Short Sale Reporting on Form SHO; Filings not Due Until 2026

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The date for complying with new Rule 13f-2 and filing Form SHO has been extended by one year. The first filings by covered institutional investment managers will now be due February 17, 2026, rather than February 14, 2025....more

Skadden, Arps, Slate, Meagher & Flom LLP

New Short Sale Reporting Due by February 14, 2025

The Securities and Exchange Commission (SEC) adopted new Exchange Act Rule 13f-2 and related Form SHO on October 13, 2023, which requires certain institutional investment managers (Managers) to report short-sale information...more

Proskauer - Regulatory & Compliance

Proskauer Hedge Fund Trading Guide 2024 – Chapter 3: Special Issues under Sections 13(d) and 16 for Hedge Funds

Proskauer’s Practical Guide to the Regulation of Hedge Fund Trading Activities offers a concise, easy-to-read overview of the trading issues and questions we commonly encounter when advising hedge funds and their managers. It...more

Davies Ward Phillips & Vineberg LLP

Making a Profit Is Not Illegal: Capital Markets Tribunal Dismisses Enforcement Proceedings Finding Borrowed Free Trading Shares...

The Ontario Capital Markets Tribunal (Tribunal) recently dismissed enforcement proceedings brought against several respondents by the Ontario Securities Commission (Commission) in Cormark Securities Inc (Re). The Commission...more

Morgan Lewis

Reminder: SEC’s New Short Sale Reporting Filings Due February 2025

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Compliance with the US Securities and Exchange Commission’s (SEC’s) new Rule 13f-2 is required as of January 2, 2025. Institutional investment managers whose short positions exceed a reporting threshold in the month of...more

Foley Hoag LLP

SEC Short Sale Disclosure Rules & Upcoming Compliance Date

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On October 13, 2023, the SEC adopted Rule 13f-2 and related Form SHO pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”). Rule 13f-2 seeks to address Congress’ directive under Section 929X of the Dodd-Frank...more

Carlton Fields

Market Pushes Back on SEC Short Sale Reporting Rule

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On October 13, the SEC adopted a new Securities Exchange Act rule that will require ‘‘institutional investment managers,’’ such as insurance companies, banks, brokers and dealers, investment advisers, and pension funds, that...more

A&O Shearman

The UK’s Lighter-Touch, Post-Brexit, Short Selling Regime

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The U.K. is currently engaged in a wide-ranging review of the inherited package of EU financial services law. The rules on short selling, which impose disclosure obligations and restrictions on persons seeking an economic...more

Morrison & Foerster LLP

Top 5 SEC Developments (October 2023)

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Each month, we publish a roundup of the most important SEC enforcement developments for busy in-house lawyers and compliance professionals. This month we examine: • Fraud and internal control failure charges against...more

Eversheds Sutherland (US) LLP

SEC adopts rules requiring the reporting of securities loans and the disclosure of short sales

On October 13, 2023, the Securities and Exchange Commission (SEC) adopted new Rule 10c-1a under the Securities Exchange Act of 1934, as amended (1934 Act), requiring certain persons to report securities loan information to...more

Morgan Lewis

SEC Adopts Short Interest Reporting Requirement

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The Securities and Exchange Commission (SEC) adopted a new rule and form requiring certain persons to report short sale-related data to the SEC, which will in turn publish aggregate data. The SEC also adopted related...more

Dechert LLP

SEC Adopts Rules on Short Sales and Securities Lending

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The Securities and Exchange Commission on October 13, 2023, adopted two new rules under the Securities Exchange Act of 1934 expanding reporting requirements for securities lending and short sales and amending rules regarding...more

Davies Ward Phillips & Vineberg LLP

Canadian Dual-Listed Company Insiders May Become Subject to U.S. Short-Swing Profit and Insider Reporting Rules

Buried in the National Defense Authorization Act for Fiscal Year 2024, which the U.S. Senate passed earlier this year, is a provision that, if enacted, will eliminate exemptions relied upon by insiders of dual-listed Canadian...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Adopts Short Sale Disclosure Rules

The Securities and Exchange Commission (SEC) has voted to adopt new Rule 13f-2 and related Form SHO requiring certain institutional investment managers (managers) to report short sale-related information to the SEC....more

Proskauer Rose LLP

SEC Adopts New Short Sale Disclosure Rule

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On October 13, 2023, the Securities and Exchange Commission adopted new Rule 13f-2 to require monthly reporting of short sale positions and activity data on new Form SHO by institutional investment managers. The new rules...more

Katten Muchin Rosenman LLP

The SEC Adopts New Short Sale Reporting Requirements for Institutional Investment Managers

On October 13, 2023, the SEC adopted Rule 13f-2 which will require institutional investment managers (“Institutional Managers”) to report on new Form SHO specified short position data and short activity data for equity...more

Paul Hastings LLP

Public Company Watch: October 2023

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In the October edition of our Public Company Watch, we cover key issues impacting public companies, including the SEC adopting rules modernizing beneficial ownership reporting and short sale reporting, and issuing new C&DIs...more

Paul Hastings LLP

SEC Adopts Rules Enhancing Short Sale Disclosures

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On October 13, 2023, the U.S. Securities and Exchange Commission (the “SEC”) adopted final rules requiring the reporting and disclosure of short sale trade data information. New Rule 13f-2 implements new obligations on...more

Perkins Coie

Market Turmoil Caused by “Run on the Banks” Leads to Trading Halts

Perkins Coie on

On March 10, 2023, volatility resulting from concerns regarding runs on certain banks triggered trading halts in those banks’ stocks on the New York Stock Exchange (NYSE) and Nasdaq. March 13, 2023, saw additional trading...more

Rivkin Radler LLP

Applying FIRPTA to Short Sales

Rivkin Radler LLP on

State of the “Union” Did you watch the President’s state of the union address the other night? Was it as you expected? Were you hoping for something more? Were you disappointed? Did you find it informative? Maybe...more

Holland & Knight LLP

Distortion to Static: Key First Circuit Opinion Clarifies Limits for Short Sellers

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The U.S. Court of Appeals for the First Circuit on Jan. 3, 2023, ruled against Defendant Gregory "Emmanuel" Lemelson's request for a new trial in SEC v. Lemelson. The opinion and the underlying matter are critical reads for...more

McGlinchey Stafford

OCC Reports Quarterly Improvement in Mortgage Performance

McGlinchey Stafford on

On June 27, 2022, the Office of the Comptroller of the Currency (OCC) released its First Quarter 2022 Mortgage Metrics Report on the status of first-lien home mortgages held by seven national banks with large servicing...more

Proskauer Rose LLP

In A Trinity of Releases, the SEC Proposes To Make Hedging Transactions More Transparent

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If adopted, the proposals will likely impact market practices - In a trinity of proposing releases rolled out in less than three months, the SEC has comprehensively proposed to regulate the use of derivatives and short...more

Woodruff Sawyer

Short Reports: The Latest Litigation Threat?

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“Short reports,” also known as “short-seller attacks,” are investigative-type reports with negative allegations about a company published by short sellers. The “bombshell” revelations can include things like financial...more

Proskauer Rose LLP

SEC Proposes Monthly Short Sale Reporting Requirements: Aggregated Information to be Public; New Order Marking Requirements...

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The SEC recently proposed to require investment managers to report short sale information on a monthly basis if such activity exceeds certain thresholds, and to require broker dealers to begin to mark “buy to cover” trades...more

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