The Securities and Exchange Commission (SEC) has announced a temporary exemption from compliance with Rule 13f-2 under the Securities Exchange Act and Form SHO reporting requirements. This exemption extends the initial Form SHO filing deadline to Feb. 17, 2026, giving institutional investment managers additional time to comply with the short-selling disclosure regulations.
Key Updates on SEC Rule 13f-2 and Form SHO Compliance
Extended Filing Deadline – Initial Form SHO reports for the January 2026 reporting period will now be due by Feb. 17, 2026, instead of Feb. 14, 2025.
Regulatory Adjustments – The original compliance date for Rule 13f-2 and Form SHO was Jan. 2, 2025, following the Jan. 2, 2024, effective date of the rule.
Enhanced Short-Sale Transparency – Institutional investment managers exceeding specified reporting thresholds must file monthly Form SHO reports via the SEC’s EDGAR system, providing critical short-sale data.
SEC Prioritizes Compliance Readiness & Short-Sale Transparency
SEC Acting Chairman Mark Uyeda emphasized the importance of data accuracy and market integrity:
“It is important that data collected by the Commission is accurate, complete, and helpful to the market. This exemption gives filers more time to implement the technical updates required for compliance according to standards that were released only on Dec. 16, 2024, immediately prior to the holidays. Regardless of this exemption, abusive naked short selling as part of a manipulative scheme remains unlawful, and the Commission will use its regulatory tools to combat such illegal activity.”
The temporary exemption provides industry participants more time to finalize system implementations, address compliance challenges, and integrate SEC reporting requirements into their financial workflows.
How Rule 13f-2 and Form SHO Enhance Market Transparency
The SEC’s new short-sale reporting rules aim to improve financial market transparency and prevent market manipulation. These regulations complement existing short-sale disclosure practices, which include:
Daily aggregate short-selling volume data published by self-regulatory organizations (SROs).
Monthly short interest reports for exchange-listed securities.
One-month delayed disclosures of individual short-sale transactions for increased investor visibility.
By implementing Rule 13f-2 and Form SHO reporting, the SEC reinforces its commitment to fair and transparent markets, ensuring that investors have access to reliable short-sale data.
What Institutional Investors Should Do Next
Review Compliance Requirements – Ensure reporting systems align with SEC Rule 13f-2 and Form SHO standards.
Implement SEC-Approved Reporting Systems – Upgrade EDGAR-compatible filing solutions to streamline short-sale reporting.
Monitor SEC Regulatory Updates – Stay informed about short-sale disclosure rules and compliance deadlines.
With short-sale regulations evolving, institutional investors must take proactive steps to comply with SEC reporting requirements and avoid regulatory penalties.
Stay Updated on SEC Rule 13f-2 Compliance & Form SHO Reporting