On December 4, 2006, December 7, 2006, and January 10, respectively, the National Association of Securities Dealers, Inc., the New York Stock Exchange LLC and the American Stock Exchange LLC filed with the Securities and Exchange Commission proposed rule changes to increase the frequency of the short interest reporting requirements from monthly to twice per month. The proposed rule changes were previously discussed in the February 9 edition of the Corporate and Financial Weekly Digest.
The NASD, NYSE and AMEX proposed an implementation date of 180 days following the SEC’s approval of the filing in order to allow firms sufficient time to make any systems changes necessary to comply with the new requirements. In its request for comments, the SEC specifically asked whether the proposed 180 day implementation period should be shortened. On March 6, the SEC approved the proposed rule changes and found that the 180 day implementation period will provide members adequate time to make any necessary changes.