I am trying to understand what exactly happens on "settlement date" as it pertains to short interest in a stock.
Each FINRA member firm is required to report its “total” short interest positions in all customer and proprietary accounts in NASDAQ-listed securities twice a month. These reports are used to calculate short interest in NASDAQ stocks.
FINRA member firms are required to report their short positions as of settlement on (1) the 15th of each month, or the preceding business day if the 15th is not a business day, and (2) as of settlement on the last business day of the month.* The reports must be filed by the second business day after the reporting settlement date. FINRA compiles the short interest data and provides it for publication on the 8th business day after the reporting settlement date.
The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently three business days after the trade.
Is this referring to when a short is initiated, or closed?
Is the following a correct statement of the requirement for reporting? All open shorts which are still open by the settlement date have to be reported by the due date.
Settlement Date Due Date Dissemination Date November 11/14/2014 11/18/2014 11/25/2014 11/28/2014 12/02/2014 12/09/2014 December 12/15/2014 12/17/2014 12/24/2014 12/31/2014 1/05/2015 1/12/2015