Source: https://dart.deloitte.com/USDART/home/accounting/sec/rules-regulations/242-regulations-m-sho-ats-ac/242-regulation-sho-regulation-short-sales
Timestamp: 2020-04-06 08:57:01
Document Index: 569556468

Matched Legal Cases: ['§ 242', '§ 242', '§ 242', '§ 242', '§ 242', '§ 242', '§ 242', '§ 230', '§ 242', '§ 242', '§ 242', '§\u2009600']

242 — Regulation SHO — Regulation of Short Sales | DART – Deloitte Accounting Research Tool
242 — Regulation SHO — Regulation of Short Sales
Regulation SHO — Regulation of Short Sales
242.200 — Definition of “short sale” and marking requirements.
242.201 — Circuit breaker.
(1) The term covered security shall mean any NMS stock as defined in § 242.600(b)(48).
(2) The term effective transaction reporting plan for a covered security shall have the same meaning as in § 242.600(b)(23).
(4) The term national best bid shall have the same meaning as in § 242.600(b)(43).
(5) The term odd lot shall have the same meaning as in § 242.600(b)(51).
(6) The term plan processor shall have the same meaning as in § 242.600(b)(59).
(7) The term regular trading hours shall have the same meaning as in § 242.600(b)(68).
(9) The term trading center shall have the same meaning as in § 242.600(b)(82).
[75 FR 11323, Mar. 10, 2010; as amended at 83 FR 58338, Nov. 19, 2018]
242.203 — Borrowing and delivery requirements.
(ii) Provided, however, that if a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in a threshold security that was sold pursuant to § 230.144 of this chapter for thirty-five consecutive settlement days, the participant shall immediately thereafter close out the fail to deliver position in the security by purchasing securities of like kind and quantity;
242.204 — Close-out requirement.
(2) If a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in any equity security resulting from a sale of a security that a person is deemed to own pursuant to § 242.200 and that such person intends to deliver as soon as all restrictions on delivery have been removed, the participant shall, by no later than the begining of regular trading hours on the thirty-fifth consecutive calendar day following the trade date for the transaction, immediately close out the fail to deliver position by purchasing securities of like kind and quantity; or
(b) If a participant of a registered clearing agency has a fail to deliver position in any equity security at a registered clearing agency and does not close out such fail to deliver position in accordance with the requirements of paragraph (a) of this section, the participant and any broker or dealer from which it receives trades for clearance and settlement, including any market maker that would otherwise be entitled to rely on the exception provided in § 242.203(b)(2)(iii), may not accept a short sale order in the equity security from another person, or effect a short sale in the equity security for its own account, to the extent that the broker or dealer submits its short sales to that participant for clearance and settlement, without first borrowing the security, or entering into a bona fide arrangement to borrow the security, until the participant closes out the fail to deliver position by purchasing securities of like kind and quantity and that purchase has cleared and settled at a registered clearing agency; Provided, however: A broker or dealer shall not be subject to the requirements of this paragraph if the broker or dealer timely certifies to the participant of a registered clearing agency that it has not incurred a fail to deliver position on settlement date for a long or short sale in an equity security for which the participant has a fail to deliver position at a registered clearing agency or that the broker or dealer is in compliance with paragraph (e) of this section.
(c) The participant must notify any broker or dealer from which it receives trades for clearance and settlement, including any market maker that would otherwise be entitled to rely on the exception provided in § 242.203(b)(2)(iii):
(2) For purposes of this section, the term regular trading hours has the same meaning as in § 600(b)(68) of Regulation NMS (17 CFR 242.600(b)(68)).
[74 FR 38292, July 31, 2009; as amended at 83 FR 58338, Nov. 19, 2018]