NEWS
Study: Public Disclosure of Short Selling Positions by Managers Harms Market Quality
The Financial Times reports (February 9) on a new study that shows that rules requiring short sellers to disclose publicly their positions harms investors’ interests by undermining market quality. The report by the consultancy Oliver Wyman, and commissioned by the Managed Funds Association, found that short-selling disclosure rules “have materially negative impacts on market liquidity, bid-ask spreads, price discovery and intraday volatility.”
On a global basis, “public disclosure, where required, led to a decrease in short sellers’ participation in equity markets of between 20 per cent and 25 per cent, according to the report.”
