Improvising short-position disclosure is a key part of NIRI's advocacy agenda. In October 2015, NIRI joined with the NYSE Group in a rulemaking petition that asks the SEC to require 13(f) institutions to publicly report their short positions. In December 2015, Nasdaq submitted a similar rulemaking petition, which has been endorsed by the Biotechnology Innovation Organization, a trade association that represents biotech companies. So far, more than 15 public companies have submitted comment letters in support of improving short-position disclosure.

In both 2016 and 2017, the SEC's Government Business Forum on Small Business Capital Formation recommended the agency adopt a short-position disclosure mandate. Nasdaq’s 2017 "The Promise of Market Reform" report also strongly endorsed short-position reporting (“the asymmetry of information between long investors and those with short positions deprives companies of insights into trading activity and limits their ability to engage with investors and it deprives investors of information necessary to make meaningful investment decisions.”) In April 2018, a broad coalition of eight business organizations, including the U.S. Chamber of Commerce and Sifma, included short-position disclosure among its recommendations to improve the climate for IPOs and public companies. 

NIRI encourages members to ask their companies (or clients) to write comment letters to the SEC that support this much-needed reform to improve equity ownership transparency. NIRI chapters also are encouraged to submit their own letters. Comment letter templates and letters from a growing list of companies can be found below.   

Resources 

NIRI Briefing Paper, The Case for Improved Disclosure of Short Positions (May 2016)

U.S. Chamber of Commerce, Sifma, et al., “EXPANDING THE ON-RAMP: Recommendations to Help More Companies Go and Stay Public," April 2018

Edward Knight, General Counsel, Nasdaq, "The Long and Short of Unfair Trade Rules," The Hill, January 18, 2018

MiMedx Group, "Petition for Rulemaking to Require Disclosure of Short Positions," November 1, 2017.


Nasdaq, "The Promise of Market Reform: Reigniting America’s Economic Engine" (2017)

NIRI, IR Update, "The Long and the Short of It: There Is a Growing Consensus Among Companies That the SEC Should Mandate the Public Disclosure of Short Positions" (June-July 2016)

NYSE-NIRI Rulemaking Petition to the SEC on Short-Position Disclosure (October 2015)

Nasdaq, Petition for Rulemaking to Require Disclosure of Short Positions in Parity with Required Disclosure of Long Positions (December 2015)

Biotechnology Innovation Organization, Comment Letter to the SEC: Request to Require Disclosure of Short Positions in Parity With Required Disclosure of Long Positions (March 2016)



 

Comment Letter Templates

Sample Comment Letter for NYSE Companies

Sample Comment Letter for Nasdaq Companies


Comment Letters Submitted by Companies With NIRI Members

Cardinal Health

Sprint Corp. 

Freeport-McMoRan Inc. 

Herbalife Ltd.

BOK Financial Corp. 

Primoris Services Corp.

Revance Therapeutics, Inc.

Tyler Technologies

Approach Resources

EnerNOC Inc.