February 10, 2025
What happened?
The SEC issued a press release on Friday, February 7th, with a decision to provide a temporary exemption from compliance with Rule 13f-2 and Form SHO reporting until 2026. As a result of the exemption, the first reporting period will now be January 2026. Any short sales activity that meets or exceeds the specified thresholds for Form SHO reporting must be reported in a Form SHO filing due February 17, 2026. This pushes back the original deadline of February 14, 2025, for initial Form SHO filings.
In the press release, SEC Acting Chairman Mark Uyeda said “[t]his exemption gives filers more time to implement the technical updates required for compliance according to standards that were released only on Dec. 16, 2024, immediately prior to the holidays. Regardless of this exemption, abusive naked short selling as part of a manipulative scheme remains unlawful, and the Commission will use its regulatory tools to combat such illegal activity.”
The exemption will allow firms with short positions adequate time to address any remaining operational and compliance questions around Rule 13f-2 and Form SHO.
What does this mean for me?
This deadline extension comes on the heels of the extension of the amended Form PF compliance date, making it the second extension during the transition from the Biden administration to the Trump administration. Form SHO and the amended Form PF both require more transparency, and now firms have more time to prepare for these new disclosures. This could indicate a slowing of Gensler’s rule-making pace at the SEC. However, firms should take advantage of the extra time to strengthen their compliance programs, as extended deadlines will still come due.
If you have any questions or need help filing your Form SHO, FilePoint can help. Contact us today to learn more.
