On September 30, MFA submitted a letter in response to FINRA’s request for comment on proposed enhancements to the short sale reporting program. In the letter, MFA supports FINRA’s overall effort to improve aggregate short interest reporting, but urged against requiring the reporting of individual short interest position information. MFA believes improving aggregated short interest reporting and publication will provide accessible, useful data to investors while supporting fair and transparent markets without harming individual investors. Highlights of MFA’s comments to FINRA include:
- MFA Supports the Publication of Consolidated Short Interest Data: Market participants would benefit from being able to access aggregate short interest data for listed and OTC equity securities at a single source.
- MFA Supports Increasing the Frequency of Aggregated Short Interest Position Reporting and Publication: Regular reporting and publication ensure that investors have access to timely information to inform their investment decisions.
- MFA Does not Believe that Individual Account-Level Information is Necessary: FINRA already has access to this data for forensic purposes, and the creation and reporting to FINRA of this information greatly increase the risk of inadvertent disclosure and data theft.