New US SEC rules effective January 2nd, 2024, and its influence on the stock market.

• New rules aimed at boosting the transparency of short-selling
• The new rule would expand to institutional investors to report their gross short positions to the SEC monthly and certain short activity for individual dates on which trades settle. The SEC then publishes aggregate stock-specific data on a delayed basis.
• Such data puts regulators and the public in a better position to prevent or respond to destabilizing events.
• The Justice Department and the SEC have also been investigating potential manipulation by short sellers and hedge funds around the publication of negative research reports. The new rules would support the agency's effort to police the practice.
• The SEC also adopted a rule requiring institutional investors and other companies involved in lending stock as well as certain broker-dealers who borrow stocks to report information about the loans, such as the name and volume of the stock, collateral, loan dates, and termination dates to Financial Industry Regulatory Authority.
• These new rules should mitigate some of the dramatic price manipulation by short sellers and hedge funds.
• It would be interesting to see the price actions going forward of stocks that have been heavily manipulated in the past when the rules kick into gear by January 2nd, 2024.

https://www.federalregister.gov/documents/2023/11/01/2023-23050/short-position-and-short-activity-reporting-by-institutional-investment-managers