Mon, Jul 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

MFA responds to new SEC short selling restrictions

Thursday, February 25, 2010
Opalesque Industry Update - Managed Funds Association (MFA) today issued the following statement in response to the Securities and Exchange Commission’s (SEC) adoption of amendments to the rules that govern short selling.

“MFA appreciates the careful, deliberative process the SEC undertook in considering these difficult market issues. While MFA shares the SEC’s commitment to restoring investor confidence, we are disappointed that the short selling restrictions adopted today are not supported by empirical data. In particular, most market observers agree that price declines and decreased investor confidence during the financial crisis were caused by the sudden and drastic changes in economic fundamentals, including the perceived insolvency of certain companies, and not by any short selling activity.

MFA fully supports the SEC’s efforts to combat manipulative short selling and other market abuses, but those activities should not be confused with legitimate short selling. As recognized by the SEC, short selling is an essential method by which investors – including those managing institutional assets for pension funds and endowments – mitigate risk, provide needed liquidity to markets, and assert their view that the current market price of a security is overpriced relative to the company’s economic performance.

Economic analyses and independent studies demonstrate that restrictions on short selling impede these important functions and impose significantly greater transaction costs on investors.

MFA urges the SEC to carefully monitor and analyze the impact of the new restrictions on the functioning of equity markets, and commit to reevaluating the rules based on observable impacts on markets, investors, and capital formation. We will continue our dialogue with the SEC and are committed to working with the Commission to implement the new restrictions in a manner that is least disruptive to investors, markets, and the free flow of capital.

MFA looks forward to reviewing the specifics of the new rules and may have future comments.”

About Managed Funds Association
MFA is the voice of the global alternative investment industry. Its members are professionals in hedge funds, funds of funds and managed futures funds, as well as industry service providers. Established in 1991, MFA is the primary source of information for policy makers and the media and the leading advocate for sound business practices and industry growth. MFA members include the vast majority of the largest hedge fund groups in the world who manage a substantial portion of the approximately $1.5 trillion invested in absolute return strategies. MFA is headquartered in Washington , D.C. , with an office in New York . For more information, please visit: here).-KM-

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  4. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  5. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag