Core terms
Threshold Securities List
A dated SRO list of securities meeting persistent delivery-failure criteria. Regulation SHO criteria include at least 10,000 failed shares and 0.5% of shares outstanding for five consecutive settlement days.
What traders should verify
Check the list date and official source. Distinguish a confirmed streak start from “at least since.” The denominator is shares outstanding, not float. FINRA Rule 4320 has different criteria for applicable non-reporting OTC securities.
Do not conflate
Listing days do not reveal each clearing participant’s failed-position history. Counting 13 days from a listing cannot establish a universal covering deadline. Removal does not mean every fail has disappeared.