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Tuesday, November 9, 2010

Equity Technical Update #2010 - 24
Update on Changes to Regulation SHO

Markets Impacted:

Contact Information:

What you need to know:

  • As announced in Equity Technical Update #2010-23, the Securities and Exchange Commission (SEC) has extended the date for compliance with its new Regulation SHO (Reg SHO) short sale rule to February 28, 2011.
  • The NASDAQ Testing Facility will continue to support testing of Reg SHO changes during normal operational hours until February 2011.
  • The NASDAQ Stock Market® (NASDAQ®), NASDAQ OMX BXSM (BXSM) and NASDAQ OMX PSXSM (PSXSM) will temporarily continue to accept the “Short Sale Exempt” modifier on all order entry protocols, as announced in Equity Technical Update #2010-13, and treat Short Sale Exempt orders as short sale orders until the new Reg SHO short sale implementation date of February 28, 2011. Beginning February 28, 2011, short sale orders marked exempt will be treated as short sale exempt orders.

What has been announced?

As announced in Equity Technical Update #2010-23, the SEC has extended the date for compliance with its new Reg SHO short sale rule to February 28, 2011. The NASDAQ Testing Facility will support testing of Reg SHO changes until February 2011.

NASDAQ, BX and PSX will continue to accept the “Short Sale Exempt” modifier on all order entry protocols, as announced in Equity Technical Update #2010-13, and temporarily treat Short Sale Exempt orders as short sale orders until the new Reg SHO short sale implementation date of February 28, 2011. Beginning February 28, 2011, short sale orders marked exempt will be treated as short sale exempt orders.

When is testing available?

The NASDAQ Testing Facility is available Monday through Thursday, 7:30 a.m. to 10:00 p.m., Eastern Time (ET) and Fridays 7:30 a.m. to 4:00 p.m., ET. Weekend testing is available by appointment and during regularly scheduled Saturday testing.

What Short Sale Exempt reason codes are currently accepted?

As announced in Equity Technical Update #2010-13, NASDAQ, BX and PSX accept the below Short Sale Exempt values on all order entry protocols. Short Sale Exempt values will temporarily continue to be accepted and treated as short sale orders until the new Reg SHO short sale implementation date of February 28, 2011. Beginning February 28, 2011, short sale orders marked exempt will be treated as Short Sale Exempt orders.

Sell Short reasons will be accepted on all trades:
OUCH (all versions)
RASHport
FIX (all versions)
QIX
CTCI
FLITE
Short Sale Exempt Codes
“E”
“E”
Tag 54
“6”
“SX”
“SSX”
“SSHRT EXEMPT”
Tag 54
“6”

Where can I find additional information?


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