SEC Adopts New Rules to Increase Transparency Around Short Selling After GameStop Saga
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The SEC is adopting new rules to increase transparency around short selling. The rules require investors to report short positions to the SEC.
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Companies lending out shares will have to report that activity to FINRA, which will publish aggregated anonymous data.
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The rules come after the GameStop saga drew scrutiny to short selling. The SEC aims to better police the practice.
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Institutional investors must report gross and net short activity. The SEC will publish aggregated stock-specific data.
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FINRA will delay releasing loan amount data by 20 days. The rules aim to balance transparency and industry concerns.