Threshold List

AAA

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".

INVESTOPEDIA EXPLAINS '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. Naked Shorting

    The illegal practice of short selling shares that have not been ...
  2. National Securities Clearing Corporation ...

    A subsidiary of the Depository Trust & Clearing Corporation ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Regulation SHO

    A regulation implemented on January 3, 2005 that seeks to update ...
  5. Failure To Deliver

    An outcome in a transaction where one of the counterparties in ...
  6. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
Related Articles
  1. Naked Call Writing: A Risky Options ...
    Options & Futures

    Naked Call Writing: A Risky Options ...

  2. Should Your Options Go Naked?
    Options & Futures

    Should Your Options Go Naked?

  3. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  4. My brokerage firm won't allow naked ...
    Options & Futures

    My brokerage firm won't allow naked ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center