Threshold Securities - NYSE
A Threshold Security is defined by Rule 203(c)(6) of the SEC's Regulation SHO as any equity security of an issuer that is registered under Section 12, or that is required to file reports pursuant to Section 15(d) of the Exchange Act where for five consecutive settlement days: (1) there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; (2) the level of fails is equal to at least one-half of one percent of the issuer's total shares outstanding; and (3) the security is included on a list published by a self regulatory organization.
Threshold Securities under Regulation SHO Rule 203(c)(6), by definition, are limited to equity securities. The term "equity security" is defined in Section 3(a)(11) of the Exchange Act and Rule 3a11-1 thereunder. A security convertible into an equity security is an equity security. Therefore, a debt security would not be a Threshold Security unless such debt security is convertible into an equity security. Any debt securities that may inadvertently be included in published Threshold Lists are not subject to the Rule 203(b)(3) Threshold Security close-out requirement of Regulation SHO. There may be instances where the equity status of a security is not clear. Accordingly, questions regarding whether a particular security is a debt or equity security for purposes of Regulation SHO should be directed to staff of the Securities and Exchange Commission. See Division of Market Regulation: Responses to Frequently Asked Questions Concerning Regulation SHO, FAQ 1.4.
Reg SHO is designed to fulfill several objectives, including: (a) the establishment of uniform locate and delivery requirements in order to address problems associated with failures to deliver, and (b) the creation of uniform marking requirements for sales of all equity securities.
Accordingly, NYSE will post a list of threshold securities on this site for every settlement day.
Note: the Threshold List will not be generated on bank holidays when the Depository Trust & Clearing Corporation is closed but equity exchanges are open.
Due to a technical problem that was recently discovered, for 66 trade dates between January 1, 2010 and February 22, 2011, the Threshold Securities Lists published for NYSE, NYSE MKT and NYSE Arca incorrectly omitted securities that met the requirements for a Threshold Security. The Threshold Securities Lists for those trade dates were republished on February 24, 2011 with corrected information. The affected dates are noted by an asterisk.