SHORT SALE REFORMS.

SEC. 929X. SHORT SALE REFORMS.(a) Short Sale Disclosure.—Section 13(f) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(f)) is amended by redesignating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5), and (6), respectively, and inserting after paragraph (1) the following:“(2) The Commission shall prescribe rules providing for the public disclosure of the name of the issuer and the title, class, CUSIP number, aggregate amount of the number of short sales of each security, and any additional information determined by the Commission following the end of the reporting period. At a minimum, such public disclosure shall occur every month.”.(b) Short Selling Enforcement.—Section 9 of the Securities Exchange Act of 1934 (15 U.S.C. 78i) is amended—(1) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (e), (f), (g), (h), (i), and (j), respectively; and(2) inserting after subsection (c), the following new subsection:“(d) Transactions Relating to Short Sales of Securities.—It shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange to effect, alone or with one or more other persons, a manipulative short sale of any security. The Commission shall issue such other rules as are necessary or appropriate to ensure that the appropriate enforcement options and remedies are available for violations of this subsection in the public interest or for the protection of investors.”.(c) Investor Notification.—Section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o) is amended—(1) by redesignating subsections (e), (f), (g), (h), and (i) as subsections (f), (g), (h), (i), and (j), respectively; and(2) inserting after subsection (d) the following new subsection:“(e) Notices to Customers Regarding Securities Lending.—Every registered broker or dealer shall provide notice to its customers that they may elect not to allow their fully paid securities to be used in connection with short sales. If a broker or dealer uses a customer’s securities in connection with short sales, the broker or dealer shall provide notice to its customer that the broker or dealer may receive compensation in connection with lending the customer’s securities. The Commission, by rule, as it deems necessary or appropriate in the public interest and for the protection 124 STAT. 1871 of investors, may prescribe the form, content, time, and manner of delivery of any notice required under this paragraph.”.