SEC Seeks Comments on Extending Short-Selling Paperwork Rules
Published Date: 1/23/2026
Notice
Summary
The SEC is asking for comments to keep collecting info on rules that control short selling in the stock market. These rules help make sure brokers and trading centers follow fair price limits when selling stocks short. This update mainly affects brokers and trading centers, with no new costs or big changes, just an extension of current paperwork requirements.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
Estimated industry burden and external cost
The SEC estimates that registered SRO and non-SRO respondents subject to Rule 201 and Rule 200(g) incur an aggregate annual burden of 1,446,553 hours to comply and an aggregate annual external cost of $248,000.
Maintain written policies and 'short exempt' markings
Brokers, broker-dealers, and trading centers must maintain written policies and procedures required by Rule 201 (including Rule 201(c) and the riskless principal provision of Rule 201(d)(6)) and must mark qualifying sell orders "short exempt" under Rule 200(g). These records enable the SEC and self-regulatory organizations to examine and monitor compliance with the short-sale rules.
Paperwork extension for short-sale rules
If you run a broker-dealer or a trading center, the SEC plans to extend the existing paperwork collection under Rule 201 and Rule 200(g) of Regulation SHO so you must continue to comply with current written policies, procedures, and marking requirements. The notice requests comments and sets a comment deadline of March 24, 2026.
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