Regulation SHO

Regulation SHO governs short sales in US equities, imposing locate and close-out requirements and a price test triggered by sharp declines.

instruments and markets · updated 2026-09-08

Where does regulation sho come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• The naked short selling debate — Naked short selling is selling short without having borrowed the security or arranged to borrow it, which is restricted by Regulation SHO and whose real-world scale and price impact remain genuinely contested.

Enforcement actions involving these techniques

See also

• Naked short selling — Naked short selling is selling short without having borrowed the security or arranged to borrow it. Regulation SHO restricts it an…
• Failure to deliver — A failure to deliver occurs when a seller does not deliver securities by the settlement date. Most failures are operational rather…

Terms that refer here

Failure to deliver · Naked short selling

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