Regulation SHO took effect January 3, 2005, and provides a regulatory framework governing short selling of securities. It was designed with the objective of simplifying and modernizing short sale regulation and providing controls where they are most needed. At the conclusion of each settlement day, data is provided on securities in which: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days, and 2) these failures constitute at least 0.5% of the issuer's total shares outstanding. Regulation SHO mandates that, if a clearing agent has had a fail-to-deliver position, that clearing agent, and the broker/dealer it clears for, must purchase securities to close out its fail to deliver position. Amended Regulation SHO states that any failure to deliver without an exemption must cover by the morning of T+4, which is one day after the short sale transaction has settled. If these conditions are not met, then the short seller and the firm the transaction was cleared through are not in compliance with Regulation SHO.