Order Marking Requirements

What this video covers

• Why every sell order of any equity security must be marked long, short, or short exempt, including OTC equity orders
• The two requirements for a long mark: deemed ownership plus physical possession or control, or a reasonable expectation of possession by settlement
• How the net long cap applies when a customer is long 1,000 shares and short 800 shares, leaving only 200 shares eligible for a long mark
• The two short-exempt gates: a price above the current national best bid or one of the seven listed technical situations
• Why short-exempt marking is available only after the listing market determines and notifies a 10% decline from the prior day's closing price
• Why the alternative uptick rule applies only to covered securities, so an OTC equity cannot receive a short-exempt mark
• Why short is the residual mark when an order does not qualify for either long or short exempt