Today, the Securities and Exchange Commission issued an order (the “Order”) that provides a temporary exemption from compliance with the short position and short activity reporting rule (Rule 13f-2 and Form SHO reporting) until January 2, 2028. The Order also provides a temporary exemption from compliance with the securities lending reporting rule (Rule 10c-1a) with respect to the reporting date until September 28, 2028, and with respect to data dissemination until March 29, 2029. This action follows the August 2025 decision by the Fifth Circuit Court of Appeals that we blogged about that remanded the rules, without vacatur, for the SEC to consider and quantify the cumulative economic impact of the two rules.
The Order notes that the extension allows the SEC to respond to the Court’s opinion and take necessary actions, which may include amendments to the rules. Commissioner Crenshaw released a statement expressing her concern with the compliance date extension. In her dissent, the Commissioner notes, “It should not take two years to complete a narrow revision of the Rules’ economic analyses consistent with the Court’s request. This could be done expeditiously and concisely. However, rather than following the Court’s narrow directive, the Commission not so subtly signals that no one should even bother with implementation; the Rules will be changing.”