ICI requests no-action relief on SEC鈥檚 short sell reporting rules
23 January 2024 US
Image: juliars/stock.adobe.com
The Investment Company Institute (ICI) has written to the US 麻豆传媒 and Exchange Commission (SEC) to request no-action relief on short sell reporting rules until additional interpretive guidance on compliance can be provided.
Under the 麻豆传媒 Exchange Act of 1934, Rule 13f-2 says institutional investment managers that meet or exceed certain prescribed reporting thresholds will report on Form SHO certain short position and short activity data for equity securities.
The commission will then aggregate and publish certain data collected from Form SHO.
According to the ICI, the need for this no-action relief is 鈥渦rgent鈥� due to the impending 14 February 2025 deadline to file the first Form SHO reports.
As an association representing the asset management industry in service of individual investors, the ICI considers the relief important as without further guidance on Form SHO, it could negatively impact the quality and accuracy of the data reported to the commission.
Institutional investment managers will report on end-of-month gross short positions in equity securities where the manager exceeds specified short position thresholds, and daily changes in gross short positions during any month where the manager has exceeded the specified gross short position threshold for the applicable security.
ICI and other industry associations previously expressed concern about the ability for institutional investment managers to meet the 2 January 2025 compliance date.
The main concern expressed was the 鈥渟hort time frame to develop and implement system changes to capture the relevant data鈥�.
Further, the ICI says the SEC has not issued any formal guidance or FAQs leading to 鈥渋nconsistent interpretations鈥� regarding the scope of equity securities included in Rule 13f-2, as well as how to report changes in gross short positions as a result of the exercise of certain derivatives.
The ICI asks to allow at least six months after the SEC鈥檚 Division of Trading and Markets has provided additional interpretative guidance on compliance with the rule.
Under the 麻豆传媒 Exchange Act of 1934, Rule 13f-2 says institutional investment managers that meet or exceed certain prescribed reporting thresholds will report on Form SHO certain short position and short activity data for equity securities.
The commission will then aggregate and publish certain data collected from Form SHO.
According to the ICI, the need for this no-action relief is 鈥渦rgent鈥� due to the impending 14 February 2025 deadline to file the first Form SHO reports.
As an association representing the asset management industry in service of individual investors, the ICI considers the relief important as without further guidance on Form SHO, it could negatively impact the quality and accuracy of the data reported to the commission.
Institutional investment managers will report on end-of-month gross short positions in equity securities where the manager exceeds specified short position thresholds, and daily changes in gross short positions during any month where the manager has exceeded the specified gross short position threshold for the applicable security.
ICI and other industry associations previously expressed concern about the ability for institutional investment managers to meet the 2 January 2025 compliance date.
The main concern expressed was the 鈥渟hort time frame to develop and implement system changes to capture the relevant data鈥�.
Further, the ICI says the SEC has not issued any formal guidance or FAQs leading to 鈥渋nconsistent interpretations鈥� regarding the scope of equity securities included in Rule 13f-2, as well as how to report changes in gross short positions as a result of the exercise of certain derivatives.
The ICI asks to allow at least six months after the SEC鈥檚 Division of Trading and Markets has provided additional interpretative guidance on compliance with the rule.
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