Hedge Funds will now be forced to reveal their short positions by the SEC

by TonyLiberty

Hedge Funds will now be forced to reveal their short positions by the SEC.

The new SEC rules will require institutional investors to report their gross short positions to the agency monthly and certain “net” short activity for individual dates on which trades settle. The SEC plans to then publish aggregate stock-specific data on a delayed basis.

The rules will apply to institutional investors with short positions of at least 0.5% of a company’s outstanding shares.

These new SEC rules are a significant step toward achieving greater transparency and preventing market manipulation in short-selling practices.

Read here more:

• www.wsj.com/finance/regulation/hedge-funds-would-have-to-tell-sec-which-companies-they-sell-short-under-new-rules-65447480
• www.bloomberg.com/news/articles/2023-10-13/hedge-funds-to-get-new-sec-mandates-for-reporting-short-sales