Threshold List

DEFINITION of 'Threshold List'

A daily public accounting of market settlement system failures (or 'fails') published by the National Securities Clearing Corporation in compliance with SEC regulations. A market settlement failure occurs when delivery on a security is not made within the alloted settlement period.

Also referred to as the "Regulation SHO Threshold Security List".

BREAKING DOWN 'Threshold List'

A security will make the threshold list if it meets the following criteria over five consecutive settlement days:
1) The total number of fails to deliver exceed 10,000 shares,
2) The total number of shares that have failed to deliver exceed 0.5% of the outstanding shares and
3) The security is listed on a similar list by a self-regulatory organization.

Once a company is added to the list it remains there until the 'fails' fall beneath the benchmark standards for five consecutive trading days. Many stocks that have allegedly seen naked short selling will end up on this list.

RELATED TERMS
  1. Settlement Period

    The period of time between the settlement date and the transaction ...
  2. Receive Versus Payment - RVP

    A settlement procedure in which an institutional sell order is ...
  3. Cash Delivery

    1. The same-day settlement of a currency trade in the forex market. ...
  4. Delivery Versus Payment - DVP

    A securities industry settlement procedure in which the buyer's ...
  5. Rolling Settlement

    The process of settling security trades on successive dates so ...
  6. Committee On Payment And Settlement ...

    A committee made up of the central banks of G10 countries that ...
Related Articles
  1. Investing Basics

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  2. Options & Futures

    The Foundation Of Structured Settlements

    This annuitized payment setup should be arranged through impartial attorneys and tax agents.
  3. Economics

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  4. Stock Analysis

    What First Horizon's FHFA Settlement Means For RBS and Goldman

    The Federal Housing Finance Agency (FHFA) has settled the smallest securities fraud suit that remained of the 18 it had filed back in 2011, regarding mortgage-backed securities sold to Fannie ...
  5. Credit & Loans

    Debt Settlement Arrangements And Your Credit Score

    The debt settlement process is not for everyone and can further damage your credit score. However, it can prevent the debt from being sold to a collection agency, who may only accept payment ...
  6. Credit & Loans

    A Guide To Debt Settlement

    Find out how you can negotiate your way to a lower debt load by paying up front.
  7. Options & Futures

    Profit From Unwanted Life Policies With Life Settlement

    With a life settlement you could cash in on your policy money now.
  8. Home & Auto

    Homeowners Still Not Getting Money From $25-Billion Mortgage Settlement

    Was the recent mortgage settlement really worth it for homeowners, or are they still getting the short end of the stick?
  9. Active Trading Fundamentals

    Short Selling: Why Short?

    Generally, the two main reasons to short are to either speculate or to hedge. When you speculate, you are watching for fluctuations in the market in order to quickly make a big profit off of ...
  10. Insurance

    An Introduction To Life Settlements

    A life settlement is the trading of a life insurance policy under specific circumstances. Learn what it's all about.
RELATED FAQS
  1. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  2. How long will it take for me to receive the money that I profited from the stock ...

    What I'm trying to say is that if I place in an order into the market, and either profit or lose the money, how long ... Read Answer >>
  3. How do futures contracts roll over?

    Learn about why futures contracts are often rolled over into forward month contracts prior to expiration, and understand ... Read Answer >>
  4. Will a debt settlement program affect my credit score?

    Understand the impact of negotiating debt settlements on your credit score, and learn what factors determine the size of ... Read Answer >>
  5. What's the difference between debt consolidation and debt settlement?

    Learn the differences between negotiating a debt settlement with your existing creditors and applying for a new consolidation ... Read Answer >>
  6. If I purchase a stock and it gives me the executed date and the stock sale price ...

Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center