Dodd-Frank Requires Short Sale Reporting and Prohibits Manipulative Shorts
The Dodd-Frank financial reform legislation includes amendments to Section 13(f) that will require institutional investment managers to report short sale position on a periodic basis. The legislation mandates the SEC to write rules for the “public disclosure of the name of the issuer and the title, class, CUSIP number, aggregate amount of the number of short sales of each security, and any additional information determined by the Commission.” Presumably, the list of reportable securities will be published similarly to the list for equity securities currently subject to 13(f) reporting. Section 13(f) applies to institutional investment managers who have discretionary authority over more than $100 Million in listed securities. The legislation also makes it illegal to effect a “manipulative short sale of any security” and directs the SEC to issue enforcement rules.