BYND RegSho Forced Covering

This chart puts a vertical line on everyday BYND has been on RegSho from the date range of August 2019 to June 2024

Beyond Meat (BYND) is a heavily shorted company as many of you are aware with a high short interest of 39%+ its float.

On the start of June 27th trading day BYND entered the regsho inclusion list where the stock has huge price increases on regsho.

What is regsho?

As defined in Rule 203(c)(6) of Regulation SHO, a “threshold security” is any equity security of any issuer that is registered under Section 12 of the Exchange Act, or that is required to file reports under Section 15(d) of the Exchange Act (commonly referred to as reporting securities), where, for five consecutive settlement days:

-There are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security;

-The level of fails is equal to at least one-half of one percent of the issuer’s total shares outstanding; and

-The security is included on a list published by a self-regulatory organization (SRO).

A security ceases to be a threshold security if it does not exceed the specified level of fails for five consecutive settlement days.

A security can be added on this because the failures to settle can be a sign of high shorting and improper naked short selling as you can see from the stock’s high short interest.

When BYND is on regsho it is extremely hard to short with limited liquidity and the high cost to borrow rate (IBKR’s retail fee

currently at 111.7216%), there is also a prime rate but that’s for the bigger players probably around 15-20% which is extremely high regardless. This can lead to an increase in the price of BYND.

After T+13 (13 trading days after its been included to the list) force covering begins where they are forced to cover the amount on the first day of regsho inclusion until the stock is off regsho.

The last two times BYND has been on Regsho the shorts ran the stock up on t+13 th day.