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09/15/2021 |

TrendSpider Software Update: FINRA Reg SHO Short Sale Volume Data for Charts

Hello, everyone!  We are very excited to bring you yet another update to the TrendSpider Platform. In this release, we have fixed a few minor bugs, added a new type of data to the platform, and made some other small tweaks.

New Data Source: FINRA Reg SHO Short Sale Volume Data

We have integrated data from FINRA Reg SHO into your TrendSpider charts. You may enable this data in the new “Other Data” tool in your toolbar. When activated, it will create a special new lower indicator at the bottom of your chart that will show the data.

How to Use It

  • Click on the 3-dot side-menu button next to the “Other Data” button in the top toolbar
  • Check the box next to “Finra Reg SHO” data
  • Click Apply
  • Be sure that it is enabled in the Chart Key on the top left corner of the charts
  • You will see a new lower indicator appear on your screen

Short trading data added in TrendSpider.

We Have Renamed the “Events” Button in the Toolbar to “Other Data”

To better reflect the function of this feature, we have renamed “Events” to “Other Data” in the top TrendSpider toolbar. This menu offers you the ability to turn on and off the following data types on your charts.

  • Analysts
  • Splits
  • Dividends
  • Earnings
  • Short Volume (new)

Some Tips and Warnings About This Data

  • This data is NOT real-time. It is updated once per day.
  • This data does NOT feature intraday granularity. There will only be one reading per calendar day.
  • This data does NOT support other asset types. It will only work on US equities and ETFs traded on FINRA-regulated Exchanges.
  • This data does NOT represent a complete “short volume” report across all Exchanges. Because of that, you can’t divide the total traded Volume by the reported FINRA Reg SHO Short Sale Volume and get a reliable number to use as a short interest percentage.
  • We only have data since Aug 2018 (we use Consolidated data set from FINRA and that is the limitation of what they provide in the data set.)
  • This data is NOT the same as FINRA’s bi-weekly Short Volume data. This is their Reg SHO data.

For additional details, please visit the TrendSpider support center which features a new article that describes how this data works.

We STRONGLY recommend that you also read about this data itself on the FINRA website before using it. Specifically, the following warnings (taken from FINRA’s website):

  • The Short Sale Files exclude any trading activity that is not publicly disseminated. As a result, some offsetting buying activity related to reported short selling would not be reflected in the Daily File and may result in the appearance of a higher concentration of short sale volume to total volume.
  • The Short Sale Files are not consolidated with exchange data. To obtain a complete picture of the short sale volume to total volume for a particular exchange-listed stock, market participants must combine data from the separate files for each of the TRFs and the ADF, as well as from each exchange.
  • The Short Sale Files do not—and are not intended to—equate to bi-monthly reported short interest position information. The short interest data reflects aggregate short positions held by market participants at a specific moment in time on two discrete days each month, while the Daily Short Sale Volume File reflects the aggregate volume of trades executed and reported as short sales on each trade date.

How to Read This Data

In the example chart from $AMC below, please note the bottom lower indicator. This is what you will see on your charts when you enable this data. You may then correlate it to the price action above as you see fit. In this example, there is an obvious increase in Short Sale Volume when the price started moving up in March, which was then followed by an even larger move to the upside (likely driven by the short-sellers covering their positions for losses.)

Please keep in mind:

  • “Regulation SHO” is a FINRA regulation that requires broker-dealers to identify a source of borrowable stock before executing a short sale in any equity.
  • “Daily Short Sale Volume” provides aggregated volume by security for all short sale trades executed and reported to a TRF, the ADF, or the ORF during normal market hours for public dissemination purposes. It reflects the aggregate volume of trades executed and reported as short sales on each trade date.
  • This is NOT the same as “Short Interest” and should not be construed to be.

Short sale volume indicator in TrendSpider.

Where is Reg SHO Data Supported in TrendSpider?

Currently, this data is only available for charting. However, we will be adding support for this type of data in the scanners, alerts, and backtester in the near future!