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accepts payments from the issuer of a security and distributes the payments to the holders of the security. Deadline. ‘‘(2) RULEMAKING.—The Commission shall adopt such rules, regulations, and orders necessary to implement this subsection no later than 1 year after the date of enactment of this sub- section. In proposing such rules, the Commission shall seek to minimize disruptions to current systems used by or on behalf of paying agents to process payment to account holders and avoid requiring multiple paying agents to send written notifica- tion to a missing security holder regarding the same not yet negotiated check.’’.

SEC. 929X. SHORT SALE REFORMS.
(a) SHORT SALE DISCLOSURE.—Section 13(f) of the Securities
Exchange Act of 1934 (15 U.S.C. 78m(f)) is amended by redesig-
nating paragraphs (2), (3), (4), and (5) as paragraphs (3), (4), (5),
and (6), respectively, and inserting after paragraph (1) the following:
Regulations. ‘‘(2) The Commission shall prescribe rules providing for
the public disclosure of the name of the issuer and the title,
class, CUSIP number, aggregate amount of the number of
short sales of each security, and any additional information
determined by the Commission following the end of the
Deadline. reporting period. At a minimum, such public disclosure shall
occur every month.’’.
(b) SHORT SELLING ENFORCEMENT.—Section 9 of the Securities
Exchange Act of 1934 (15 U.S.C. 78i) is amended—
(1) by redesignating subsections (d), (e), (f), (g), (h), and
(i) as subsections (e), (f), (g), (h), (i), and (j), respectively; and
(2) inserting after subsection (c), the following new sub-
section:
‘‘(d) TRANSACTIONS RELATING TO SHORT SALES OF SECURITIES.—
It shall be unlawful for any person, directly or indirectly, by the
use of the mails or any means or instrumentality of interstate
commerce, or of any facility of any national securities exchange,
or for any member of a national securities exchange to effect,
alone or with one or more other persons, a manipulative short
Regulations. sale of any security. The Commission shall issue such other rules
as are necessary or appropriate to ensure that the appropriate
enforcement options and remedies are available for violations of
this subsection in the public interest or for the protection of inves-
tors.’’.
(c) INVESTOR NOTIFICATION.—Section 15 of the Securities
Exchange Act of 1934 (15 U.S.C. 78o) is amended—
(1) by redesignating subsections (e), (f), (g), (h), and (i)
as subsections (f), (g), (h), (i), and (j), respectively; and
(2) inserting after subsection (d) the following new sub-
section:
‘‘(e) NOTICES TO CUSTOMERS REGARDING SECURITIES LENDING.—
Every registered broker or dealer shall provide notice to its cus-
tomers that they may elect not to allow their fully paid securities
to be used in connection with short sales. If a broker or dealer
uses a customer’s securities in connection with short sales, the
broker or dealer shall provide notice to its customer that the broker

LAWS or dealer may receive compensation in connection with lending the customer’s securities. The Commission, by rule, as it deems necessary or appropriate in the public interest and for the protectionPUBLIC with on anorris VerDate Nov 24 2008 00:49 Aug 26, 2010 Jkt 089139 PO 00203 Frm 00496 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL203.111 GPO1 PsN: PUBL203