April 18, 2005
Threshold securities are equity securities that have an aggregate fail to deliver position for:
- five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));
- totaling 10,000 shares or more; and
- equal to at least 0.5% of the issuer's total shares outstanding.
Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies"). Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets, cannot be threshold securities.
For more information about threshold securities, including where you can find threshold lists, please see the Division of Market Regulation’s Key Points About Regulation SHO, particularly Part IV, entitled Threshold Securities.