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May a seller mark an order “long” if the seller owns the security pursuant to Rule 200(b) but is not “net long” in the security?

April 26, 2017Mark owns pursuant rule security seller

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May a seller mark an order “long” if the seller owns the security pursuant to Rule 200(b) but is not “net long” in the security?

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Rule 200(c) provides that a person shall be deemed to “own” securities only to the extent that the person has a “net long” position in such securities. Therefore, a seller must be net long in a security in order to mark “long” an order for that security. Rule 200(c) does not change the “net long” requirement of former Rule 3b-3. (NEW!