UK should ditch public disclosure of short positions, says MFA

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The Managed Funds Association (MFA), a trade body for the hedge fund industry, has written a letter to the UK's HM Treasury suggesting that the requirement for hedge funds to publicly disclose their short positions should be ditched in favour of regulator-only notifications, according to a report by Reuters.

Britain is currently reviewing its short selling rules as part of a wider review of its post-Brexit asset management regulations.

According to the MFA's letter, the change would prevent a "herd-like mentality" when firm's copy each others positions, and make hedge funds less "susceptible to short squeezes".

The MFA would also like to see the threshold at which a shortseller is required to report their short positions raised from its current level of 0.1% of a company's shares to 0.2%.

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