FINRA issued guidance to remind firms of their obligation to report short positions by individual firm or customer account on a gross basis. The guidance emphasizes the requirements under Rule 4560. Firms that hold positions in master/sub or parent/child accounts must report short interest based on the short position in each sub or child account. FINRA noted that firms often incorrectly report net short interest for each account grouping (i.e., by master or parent account) instead of on a gross basis for each account.

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