SQQQ - SEC's New Short-Selling Rules Face Court Challenge Accusations They 'Harm Market Participants And Investors' | Benzinga
Three hedge fund associations are suing the Securities and Exchange Commission in a bid to overturn that they say “impair price discovery.”
The National Association of Private Fund Managers (NAPFM), Alternative Investment Management Association (AIMA) and the Managed Funds Association (MFA) have jointly filed a lawsuit asking the U.S. Court of Appeals for the Fifth Circuit to “invalidate” two rules recently adopted by the SEC requiring hedge funds to report details of securities loans and short selling activity.
Two new rules were approved by the SEC in October that require:
- Certain fund managers to report their short sales to the SEC within 14 days of month end. The agency publishes the data on a delayed basis, keeping fund manager information confidential.
- Financial companies that facilitate securities loans disclose information about those transactions to FINRA on a daily basis.
Exec: SEC Rules ‘Impair Market Efficiency’
The petitioners argued the rules would apply contradictory and incoherent ...