NYSE seeks new rules on hedge funds

Hedge Fund

The New York Stock Exchange is prodding its regulator to make hedge funds reveal which stocks they’re shorting, an area where the U.S. lags far behind Europe.

Bloomberg News reports that NYSE wants the Securities and Exchange Commission to compel investors to identify the stocks they are betting will fall.

The U.S. lacks such rules, leaving it behind the European Union, which obliges funds to publish short positions once they reach 0.5% of a company’s share capital.

In a letter dated October 7, NYSE, a division of Intercontinental Exchange, calls for the SEC to 'bring light to a less transparent and increasingly consequential corner of the securities market'.

While big funds pay their brokers to compile up-to-date short-selling data, everyone else has to wait up to two weeks for the stock exchanges to publish the official tally of how much of a company’s shares are out on loan. The SEC forces hedge funds to report their long positions periodically, but it has no such rule for their short positions.

To access the complete Bloomberg News article hit the link below:

NYSE Pleads for Rules to Make Hedge Funds Reveal Short Positions

U.K. Regulator Won’t Break Up Banks, or End Free Checking

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts