Ref Sho Threshold List Overview per Investopedia: The Rationale for the Threshold List SEC's Regulation SHO establishes a framework to govern short sales. In a short sale, an investor sells a security he does not own and borrows the security from a broker-dealer to deliver to the buyer. The purpose of Regulation SHO is to reduce the number of failures to deliver by requiring broker-dealers to find a source of borrowable stock before executing a short sale on behalf of a client. The design of this rule is to minimize or eliminate abusive "naked" short selling that could be part of a scheme to manipulate the price of a stock. Note that the securities on the list should not automatically be regarded with suspicion, as there can be legitimate reasons for a delivery failure. For instance, an administrative error could delay delivery. The threshold list is published on a daily basis to provide transparency to securities that meet the criteria above. A threshold list is viewable on websites maintained by the Nasdaq Stock Market, New York Stock Exchange, Chicago Stock Exchange, BATS Exchange and FINRA.
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