TY  - JOUR
AB  - Purpose To summarize and analyze guidance provided by the US Securities and Exchange Commission (“SEC”) on what constitutes “bona-fide market making” for purposes of Regulation SHO’s exception to the locate requirement.Design/methodology/approach Explains SEC guidance on this subject, focusing on statements by the SEC and its staff related to Regulation SHO and SEC enforcement matters, including a recent SEC administrative proceeding providing concrete examples of activity that does not constitute bona-fide market making.Findings While there is still a lot of room for additional SEC guidance on what constitutes bona-fide market making, the SEC has provided some details on the specific type of trading that would not fall within the Regulation SHO exceptions applying to bona-fide market making activities. However, there is still a large gap between the type of activity that most likely falls within the exception and the concrete examples analyzed by the SEC.Originality/value Practical guidance from experienced securities lawyers that consolidates SEC guidance on the bona-fide market making exception.
VL  - 18
IS  - 2
SN  - 1528-5812
DO  - 10.1108/JOIC-04-2017-0019
UR  - https://doi.org/10.1108/JOIC-04-2017-0019
AU  - Bergmann Larry E.
AU  - Dombach James P.
PY  - 2017
Y1  - 2017/01/01
TI  - What is a Regulation SHO bona-fide market maker?
T2  - Journal of Investment Compliance
PB  - Emerald Publishing Limited
SP  - 19
EP  - 26
Y2  - 2024/04/24
ER  -