LTSE Tweaks Rules for Short Sale Trade Reporting
Published Date: 12/30/2025
Notice
Summary
The Long-Term Stock Exchange (LTSE) is updating a rule to make sure broker-dealers report if a stock sale order is a special kind of short sale tied to market makers. This change helps keep trading data clear and follows new national rules. It takes effect right away and mainly affects broker-dealers who report trades, with no new costs involved.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
New CAT report for BFMM short sales
If you are a broker-dealer or other Industry Member that reports trades to the Consolidated Audit Trail (CAT), you must record and report whether the original receipt or origination of an order to sell an equity security is a short sale effected by a market maker claiming the bona fide market making (BFMM) exception in Rule 203(b)(2)(iii) of Regulation SHO under the CAT NMS Plan. This amendment implements paragraph (D) to Section 6.4(d)(ii) of the CAT NMS Plan and is added as paragraph (G) to Rule 11.630 of the Exchange's CAT Compliance Rule.
Change effective immediately upon filing
The proposed amendment to Rule 11.630 became operative immediately upon filing (filed December 12, 2025) after the Commission waived the normal 30-day operative delay. Industry Members required to comply with Rule 11.630 should note the change is in effect upon filing.
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