Clarifying the Data
FINRA has issued guidance to prevent misperceptions regarding its Short Sale Volume Files. These files reflect the aggregate volume of trades executed as short sales on a specific date, which is fundamentally different from the bi-monthly short interest position information that reflects total open positions at a specific moment in time.
Key Takeaways for Analysts
- The files do not include non-publicly disseminated trading activity.
- Data is not consolidated with exchange-specific reports; analysts must combine TRF, ADF, and exchange data for a complete picture.
- High short volume does not equate to high short interest; it is a measure of daily flow, not the total size of the short book.
Signal data sourced from FINRA. This post is an original analysis prepared by The Forensic Ledger from publicly available data. Not investment advice.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.