Brokers Must Report Short-Sale Exceptions Now
Published Date: 12/31/2025
Notice
Summary
FINRA is updating a rule to make sure broker-dealers report when they use a special exception for market makers selling stocks short. This change helps keep trading data clear and accurate, affecting anyone involved in stock trading and reporting. The new rule is effective immediately, so firms need to start following it right away, but it doesn’t add any new costs.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
New Short-Sale Exception Reporting
Broker-dealers (Industry Members) that trade equity securities must record and report to the Consolidated Audit Trail (CAT) whether an original receipt or origination of an order to sell an equity security is a short sale for which a market maker is claiming the bona fide market making exception in Rule 203(b)(2)(iii) of SEC Regulation SHO. This amendment to FINRA Rule 6830 implements the CAT NMS Plan change requiring that specific BFMM Locate Exception data be sent to the Central Repository.
Immediate Compliance Requirement
The rule change is operative immediately upon filing (filed December 12, 2025) because the SEC waived the usual 30-day operative delay. Industry Members must begin following the amended FINRA Rule 6830 right away, although the SEC may suspend the change within 60 days if it determines suspension is necessary.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in