Threshold Security


Threshold securities are US equity securities where, for 5 consecutive settlement days:


-         Have an aggregate fail to deliver position at a NSCC totaling 10,000 shares or more; and


-         The level of fails equal to at least 0.5% of the issuer's total shares outstanding, and


-         Are included on a list published by a self-regulatory organization (SRO).


Most Pink Sheets securities are excluded from the definition of threshold securities as they are not registered or required to file reports with the SEC.  A list of current threshold securities is made available on the OCC's website at