Information on short sales that investment managers must provide under an emergency order issued last week will not be made public initially but rather two weeks after it is filed, the Securities and Exchange Commission ruled Sunday.
The agency issued amendments to its emergency order of Sept. 18 requiring institutional money managers to report short sales.
The amended order took effect today.
Managed Funds Association president and chief executive Richard Baker last week called for the SEC to allow hedge funds to report their short sales to the SEC on a non-public basis.
If hedge funds had to disclose their short positions publicly, he said, it could lead to further deterioration in the securities markets if other investors sell the stocks being shorted.
In a separate amended order, the SEC yesterday also modified the list of financial firms for which short sales are banned.
The new order allows short sales that occur as a result of an automatic exercise of an equity option or futures contract held before the original order took effect.
“Recent market conditions have raised concerns that short selling in the securities of a wide range of financial institutions may be causing sudden and excessive fluctuations” that could threaten orderly markets,” the SEC said in the order.
The Managed Funds Association is based in Washington.
No comments:
Post a Comment