The SEC’s Valentine’s Day Gift to Asset Managers: An Extension of the Short Sale Reporting Deadline

This Valentine’s Day, the U.S. Securities and Exchange Commission (SEC) gave asset managers a sweet surprise in the form of extra time to comply with SEC Rule 13f-2 and Form SHO filings. Originally set to take effect January 2, 2025 with the first filing deadline being today, the compliance date has now been pushed back to 2026 giving firms a much-needed breather to align their reporting processes.

Why the delay?

SEC Rule 13f-2 was designed to enhance transparency around securities lending and short-selling activities. However, after industry feedback and concerns about implementation challenges, the SEC opted to extend the compliance deadline.

The SEC recognized that firms needed more time to adapt to the new framework, integrate the necessary technology, and establish robust compliance mechanisms. Given the complexities of securities lending and short-sale disclosures, this delay provides asset managers with breathing room to refine their processes without the immediate pressure of looming penalties.

What should asset managers do now?

While the extension offers temporary relief, firms should use this time wisely. We’ve created a template timeline to guide your firm towards full compliance by the February 17, 2026 initial Form SHO filing deadline. Download our timeline for key steps in:

• Reviewing internal processes
• Educating all relevant stakeholders on the rule’s requirements and their part in compliance
• Implementing changes necessary
• Completing the initial filing

Download

A welcome reprieve

For asset managers juggling multiple regulatory changes, this delay is a welcome reprieve, however it’s not a reason to hit pause. Firms should continue preparing to meet the new requirements efficiently and accurately. The SEC may have extended the deadline, but the clock is still ticking.

In its press release about the extension, the SEC emphasized, “Transparency is essential to well-functioning markets. And the Commission has stated the importance of providing more disclosure about short selling. It is also important to enhance the accuracy of the short sale-related data that would ultimately be provided to investors by giving institutional investment managers additional time.”

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