Technology and data analytics company S3 Partners has released a reporting and filing dashboard in response to the SEC’s new rule 13F-2, which is designed to increase market transparency regarding short selling.
Under the SEC’s proposed rule, fund management companies will be required to file gross short positions greater than or equal to $10 million or monthly average gross short positions greater than or equal to 2.5% (as a percentage of shares outstanding). In addition, funds will be required to file daily trading activity that affects a manager’s reported gross short position for each settlement date during the calendar month reporting period.
“The end goal of the SEC’s new rule is transparency, which is an outcome that will benefit all market participants. However, the reporting requirements to get to this market transparency will be extremely onerous for fund management companies. S3 adds immediate value by removing operational complexity and providing our clients with best-in-class execution,” added Sat Bhattacharya, S3’s chief technology officer, in a statement.
Rule 13F-2 is currently open for a public comment period over the next 60 days. In the meantime, S3 is offering the tool complimentary to help managers better prepare for this seismic shift in reporting. Buy side market participants can plug their current portfolio holdings into the S3 dashboard to gain instant transparency and education regarding their exposure to 13F-2 filing requirements. When the new 13F-2 rule is live, users will also be able to file directly to the SEC’s EDGAR system with one click of a button.