Thu, Nov 23, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

MFA supportive of BaFin approach to short selling disclosure

Friday, March 05, 2010
Opalesque Industry Updates - Managed Funds Association (MFA) today expressed support for the regulatory approach adopted by Germany’s Federal Financial Supervisory Authority (BaFin), though MFA has concerns about the details of the requirements for investors to disclose net short sale positions at certain thresholds.

The BaFin General Decree mandates private reporting of net short-selling positions in selected financial stocks at a threshold of 0.2% or more, and further disclosure – to be anonymised and posted on the BaFin homepage – at a level of 0.5% or more of the selected stocks. The new requirements will be implemented on March 25, 2010 and are scheduled to be enforced until January 31, 2011.

MFA believes BaFin has taken a responsible approach to increasing regulator access to short selling information while also protecting investors, and encourages other regulatory authorities to strike the same balance. The German Alternative Investments Association (BIA) joins MFA in supporting BaFin’s effort to preserve investor participation and confidence in markets by keeping short position reporting private and, when made public, anonymous.

MFA also believes that public disclosure of short position information should be done in a manner that mitigates costs to investors. MFA urges BaFin to clarify the details of the reporting requirements in order to assist investors seeking to implement operational procedures to efficiently report the appropriate data.

The BaFin approach recognizes that market abuse is distinct from legitimate short selling, which allows investors to mitigate risk, provide needed liquidity to markets, and aid in capital formation. MFA strongly supports efforts to prevent market manipulation and abuse because, as investors, MFA members have a strong interest in stable, liquid, and honest markets.

MFA encourages BaFin to track, analyze, and make public the impact of its disclosure requirements on the functioning of equity markets. Such data will enable BaFin and market participants to better judge the effectiveness of the regulations at the end of the enforcement period.

MFA looks forward to reviewing the decree in more detail, and working with regulators during the implementation process. www.managedfunds.org

kb

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. Tourbillon Capital, a $3.4bn hedge fund that's been sounding the alarm about 'frothy speculation,' is suffering big losses[more]

    From Businessinsider.com: Tourbillon Capital, a $3.4 billion hedge fund firm led by Jason Karp, is suffering. The firm's flagship Global Master fund is down 3.5% for the first 17 days of November, bringing performance for the year to November 17 to a loss of 10.6%, according to a note to investors s

  2. Fund Profile - The Tiger of Silicon Valley: Glen Kacher's sizzling hedge fund[more]

    From Forbes.com: When you live and work in a town where the median home costs $2.7 million and hobnob with the executives of billionaire factories like Facebook and Tesla, it's easy to see why you might think technology stocks are invincible. So far in 2017, the Nasdaq Composite index has gained 25%

  3. Launches - Asset manager launches Europe's first bitcoin mutual fund, Prime Capital Aviation Debt Fund enables aviation debt investments for institutional investors[more]

    Asset manager launches Europe's first bitcoin mutual fund From Coindesk.com: A French asset manager has announced the launch of Europe's first mutual fund centered around bitcoin. Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutio

  4. Legal - Consumers say hedge fund financed illegal tribal lending, New York's highest court permits shareholder of a Cayman-incorporated company to bypass Cayman law and bring derivative action in New York[more]

    Consumers say hedge fund financed illegal tribal lending From Law360.com: Vermont residents on Tuesday hit a hedge fund with a proposed class action in federal court alleging it helped concoct a sham tribal payday lending scheme meant to skirt laws preventing companies from charging cons

  5. Investing - Tech still hedge funds' sweetheart sector: Goldman Sachs, Hedge funds haven't been this leveraged to buy stocks since the bull market began, Top financials hedge fund details short bet against Morningstar, Fund CRC presents an offer for Carige's consumer credit unit, Hedge funds sell shares in Altice USA after difficult quarter[more]

    Tech still hedge funds' sweetheart sector: Goldman Sachs From Reuters.com: Tech stocks remain the largest net sector exposure for equity hedge funds, which are set to deliver their strongest returns since 2013, Goldman Sachs said on Wednesday in a note on the industry's most and l