Does grandfathering permit illegal activity to go unaddressed?
Regulation SHO does not require close-outs of “grandfathered” fails. As noted above, “grandfathered” status applies where the fail position was established prior to the security becoming a threshold security. However, any new fails in a security on the threshold list are subject to the mandatory close-out provisions. Any grandfathered position that resulted from illegal activity, such as manipulation, continues to be fully subject to redress by the Commission.34 The Commission will continue to monitor whether grandfathered open fail positions are being cleaned up under existing delivery and settlement guidelines or whether further action is warranted.
Related Questions
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- Do I need to have coverage under the Multi-Sector General Permit (MSGP) and the Construction Geneeral Permit (CGP) for mining activity?
- Does grandfathering permit illegal activity to go unaddressed?
