FAQ's

What is SEC Rule 201?  

Rule 201 is a Stock Exchange Circuit Breaker that prohibits short selling to the bid when the stock loses 10% or more. Once triggered, the stock is subject to this condition for the remainder of the current day as well as the entire next business day.1 

Where can I see a list of restricted symbols defined by rule 201? 

You can download a daily list from our website. You can also create an unamalgamated file from both the NASDAQ and NYSE exchange websites.

If my stock appears on the list Monday, will it be there Tuesday?  

Yes. If Monday was the issue’s first day of being subject to rule 201. By rule, the stock will remain restricted (and we will continue to service) for the balance of the day it is assigned and the entirety of the following day. 

What order types may I send?  

Our route is designed to accommodate sells. We accept market and limit IOC orders only.

Does Rule 201 apply if the stock is limit down and then rebounds?  

It does. Very often names do recover. We do not view this order flow as particularly uniform. Our primary goal is to provide service to you.1

I am an option market maker. Will my options still trade if rule 201 is triggered?  

Of course, but you will still be subjected to the short-sale restriction. Option MM’s are particularly vulnerable as their prices will be attacked by those able to short.

How do I route my SPI orders?  

Notify us of your interest. We can help you determine whether your front-end partner offers existing connectivity to the Sungard Global Network (SGN) via FIS and/or offer connectivity aid to the front-end/OMS provider of your choosing.

        Do you assist in locating my short stock?  

No. We do not compete with your clearing house or prime brokers. As with any front end, that portal will provide confirmation of valid locate.

Should my compliance department be notified?  

Absolutely. We encourage their review our B/D Partner acts in full compliance with Reg Sho and SEC Rule 201.2 

I like this idea. Who should I speak with at my firm?  

A manager must complete our “Executing Broker Agreement”2 and we can coordinate connectivity with your IT department. 

References

1. FINRA. 2020. “FINRA Transparency Services Uniform Reporting Agreement.” FINRA. https://www.finra.org/sites/default/files/AppSupportDoc/p018358.pdf 

2. US Securities and Exchange Commission. 2013. “Division of Trading and Markets: Responses to Frequently Asked Questions Concerning Rule 201 of Regulation SHO.” SEC.gov. https://www.sec.gov/divisions/marketreg/rule201faq.htm