Trade Reporting of Short Sales

What this video covers

• The difference between an order mark on the ticket and the trade report indicator sent to the Financial Industry Regulatory Authority (FINRA) after execution
• Why every short sale in an NMS stock reported to FINRA carries either a short sale or short sale exempt indicator
• When the short sale exempt indicator is available for a covered security that may be marked short exempt under Regulation SHO
• Why the reporting duty follows the transaction, not the reporting firm's role or status
• Why an OTC equity security receives only the short sale indicator, never a short sale exempt indicator
• How the OTC Equity Security definition starts with equity securities that are not NMS stocks and then removes restricted equity securities
• Why a restricted equity security, based on the restricted security resale safe harbor definition, falls outside the OTC short sale reporting rule