SEC. 417. COMMISSION STUDY AND REPORT ON SHORT SELLING.
(a) STUDIES.—The Division of Risk, Strategy, and Financial
Innovation of the Commission shall conduct—
(1) a study, taking into account current scholarship, on
the state of short selling on national securities exchanges and
in the over-the-counter markets, with particular attention to
the impact of recent rule changes and the incidence of—
(A) the failure to deliver shares sold short; or
(B) delivery of shares on the fourth day following the
short sale transaction; and
(2) a study of—
(A) the feasibility, benefits, and costs of requiring
reporting publicly, in real time short sale positions of publicly
listed securities, or, in the alternative, reporting such
short positions in real time only to the Commission and
the Financial Industry Regulatory Authority; and
(B) the feasibility, benefits, and costs of conducting
a voluntary pilot program in which public companies will
agree to have all trades of their shares marked ‘‘short’’,
‘‘market maker short’’, ‘‘buy’’, ‘‘buy-to-cover’’, or ‘‘long’’, and
reported in real time through the Consolidated Tape.
(b) REPORTS.—The Commission shall submit a report to the
Committee on Banking, Housing, and Urban Affairs of the Senate
and the Committee on Financial Services of the House of Representatives—
(1) on the results of the study required under subsection
(a)(1), including recommendations for market improvements,
not later than 2 years after the date of enactment of this
Act; and
(2) on the results of the study required under subsection
(a)(2), not later than 1 year after the date of enactment of
this Act.