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  • Writer's pictureASA Newsroom

ASA Statement on SEC Short Sale Disclosure on CAT Rule

WASHINGTON, DC – The American Securities Association (ASA) today issued the following statement from President and CEO Chris Iacovella on the U.S. Securities and Exchange Commission’s (SEC) vote to adopt changes to Regulation SHO, Rule 250, establishing a new “buy to cover” order marking requirements for broker-dealers and requiring Consolidated Audit Trail (CAT) reporting firms to report “buy to cover” information to CAT:

“The ASA has generally supported greater transparency regarding short sales, but it shouldn’t come by way of costly new regulations,” said ASA President & CEO Chris Iacovella. “ASA is concerned that the SEC has once again adopted entirely new mandates that will be of little benefit to investors. Equally disheartening, the SEC has again sought to expand information collected under the CAT without first addressing the significant privacy and cybersecurity concerns that the CAT presents. The SEC’s rulemaking today is much less important than safeguarding the fundamental privacy rights of American investors.”

The SEC also adopted a rule to increase transparency in capital markets, particularly related to the reporting of securities loans.

In January of 2022, ASA submitted a comment letter to the SEC in response to the Reporting of Securities Loans proposal.


About the American Securities Association

American Securities Association, based in Washington, DC, represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.


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