Threshold securities are equity securities that have an aggregate fail to deliver position for:
* five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC))
* totaling 10,000 shares or more and
* equal to at least 0.5% of the issuer's total shares outstanding ........................................ Shares Outstanding 222,450,581 a/o Oct 21, 2010
222,450,581 x .05 = 11,122,529
Therefore for the short to make the Regulation SHO Threshold List the short must be at LEAST IN EXCESS of 11 million shares!!!!
The 11 million+ shares must be covered within 13 trading days!!!
"Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).