Effective Thursday, 12/15/11, FINRA's Web-based Regulation Filing Applications ("RFA") system will include a new exchange/market code "H" for reporting short interest positions in securities for which the BATS Exchange is the primary exchange or market in the U.S. on which the security is listed as of the designated settlement date.

Short Interest Reporting - Twice Monthly. FINRA Rule 4560 requires firms to report short interest positions1 in all customer and proprietary accounts in all equity securities to FINRA twice a month.  The mid-month short interest report is based on short positions a firm holds on the settlement date of the 15th of each month.  If the 15th falls on a weekend or another non-settlement date, the designated settlement date is the previous business day on which  transactions settled.  The end-of-month short interest report is based on short positions a firm holds on the last business day of the month on which transactions settle. FINRA must receive short interest reports no later than the second business day after each reporting settlement date.

Exchange/Market Codes in Short Interest Reports. As discussed in RegNote 08-13 and NtM 06-20, use of accurate exchange/market codes is mandatory in a firm’s short interest filing, and firms must include an exchange/market code for every security and short position in each filing. Erroneous codes will be rejected and returned to the firm for resubmission.  Persistent failures are violations of Rule 4560and can result in fines or other sanctions. Here's the revised line-up of codes for each applicable exchange:

• A     -     NYSE
• B     -     Amex
• E     -     Arca
• H    -     BATS
• R     -     Nasdaq
• S     -      OTC

FINRA Staff Contacts. Direct questions to:   Legal Section, Market Reg. - (240) 386-5126;  Office of General Counsel - (202) 728-8071;  Jocelyn Mello-Gibbon, Market Reg - (240) 386-5091; or  Lauren Zito, Market Reg (240) 386-5432. For further details, go to:   [RegNote 11-55, December 2011]