Reg SHO Threshold List: Identifying Delivery-Stressed Stocks

The Regulation SHO Threshold Security List identifies stocks with significant failures to deliver — specifically, securities where aggregate FTDs have reached 10,000 shares or more for five consecutive settlement days, totaling at least 0.5% of the outstanding shares. According to StonkWhisper's analysis, threshold list appearances are meaningful signals for squeeze potential because they indicate sustained delivery stress.

Appearing on the threshold list triggers regulatory consequences: after 13 consecutive settlement days on the list, broker-dealers must close out any FTD positions by purchasing or borrowing shares. This forced buying requirement creates a potential catalyst for upward price pressure, particularly if the stock already has high short interest and building social sentiment.

StonkWhisper monitors threshold list appearances across all major exchanges and integrates this data with social sentiment tracking. When a stock appears on the threshold list AND social media discussion about the stock is building, the convergence signals a potential forced-buying catalyst that could amplify sentiment-driven momentum. The platform alerts traders to these events automatically.

Historical analysis from StonkWhisper shows that threshold list appearances generate significant Reddit discussion, particularly on subreddits focused on short squeeze plays. The platform tracks how social sentiment responds to threshold list events, measuring whether the regulatory catalyst generates sufficient conviction to sustain a move or merely creates temporary excitement.

Traders should understand that threshold list appearances do not guarantee squeezes. Many stocks appear on the list repeatedly without significant price impact because the forced close-out buying is modest relative to daily volume, or because new FTDs replace closed positions. StonkWhisper evaluates threshold list signals in the context of overall squeeze scoring rather than treating them as standalone catalysts.