Wednesday, November 10, 2010

Equity Technical Update #2010 - 25
NASDAQ ACT to Disallow Short Sale Exempt Indicators Until February 28, 2011

Markets Impacted:

Contact Information:

What you need to know:

  • 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.
  • Effective November 12, 2010, the NASDAQ ACTSM System will reject Short Sale Exempt indicators. The ACT System will reintroduce support of Short Sale Exempt indicators upon the SEC compliance date of February 28, 2010.

What is changing within ACT?

The SEC has extended the date for compliance with its new Reg SHO short sale rule to February 28, 2011.

Effective November 12, 2010, at the request of FINRA, the NASDAQ ACT System will reject Short Sale Exempt indicators until the SEC compliance date. This change applies to the FINRA/NASDAQ Trade Reporting FacilityTM (TRFTM) and the Over-the-Counter Reporting Facility (ORF).

What do I need to do to be ready for these changes?

Refer to the updated ACT specifications on the NASDAQ OMX Trader® website.

Will NASDAQ OMX offer testing opportunities?

Yes, firms will continue to be able to test ACT functionality within the NASDAQ Testing Facility (NTF).

Where can I find additional information?


FINRA, Trade Reporting Facility and TRFare trademarks of Financial Industry Regulatory Authority, Inc.


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