Reg SHO

In July 2004, the Securities and Exchange Commission (SEC) adopted Regulation SHO under the Securities and Exchange Act of 1934. These regulations modify and replace certain existing SEC and SRO rules with respect to activities associated with the short selling of securities. Below is a brief overview of the Threshold Securities section of the rule and what it means for your trading.

Threshold Security File Format

The format for the threshold securities file is ASCII text pipe delimited.

• File name formatted - ARCAEXthYYYYMMDD
• Data is formatted - Symbol|Security Name|Market Category|Reg SHO Threshold Flag|Filler|Filler
• The last line of data will include the file creation time formatted as - YYYYMMDDHHMMSS
• File Data Example: AX|Archipelago Holdings Inc |ARCAEX|Y||
  
  The url to get daily Threshold Securities files without navigation is: http://www.pacificex.com/equities/docs/SHO/ARCAEXthYYYYMMDD.txt
  
  For example http://www.pacificex.com/equities/docs/SHO/ARCAEXth20050110.txt

Download Threshold Securities Files:

Threshold Securities

Threshold Securities are defined by Regulation SHO to include securities where there have been 5 consecutive settlement days of fails greater than 10,000 shares or one half of one percent of the outstanding shares. Each SRO is required under Regulation SHO to calculate and disseminate a list of Threshold Securities for symbols listed on such SRO’s market or for which the SRO bears primary surveillance responsibility. ArcaEx will publish its list daily and those lists will remain available for the previous 30 days.

If no securities meet the threshold values then an empty file will still be produced for that settlement day. The file will be made available before 11:00 pm CT for each settlement day and will include the data from that settlement day. If there is a processing delay, the Threshold Securities file will be sent the following day and include “as of” information from the missing day. Should such a posting delay occur, ETPs should use the file from the previous day for determining Threshold Securities.

The file name will always reflect the settlement date. Within the file, you will find the date/time that the file was created. In situations where the file creation is delayed, the file name will always reflect the settlement date and the create date will reflect when the file is published.

Broker/dealers are required to close out any fail positions within 10 days after settlement for Threshold Securities. If they are unable to do so, they will be prohibited by their clearing firm from selling short that security without first pre-borrowing the stock.

Additional Information

FAQs regarding Reg SHO
http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm

Reg SHO Final Rule
http://www.sec.gov/rules/final/34-50103.htm