The Managed Funds Association, 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.
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%.
