New Rule Requires Disclosure of Hedge Fund Short Positions to the SEC, But Not to the Public

On October 15, the Securities and Exchange Commission issued interim temporary final Rule 10a-3T, requiring hedge funds to report short positions, but providing that such positions would not be publicly disclosed.  The absence of a public disclosure requirement generally was well received by the hedge fund community, but the rule still left many hedge fund lawyers and other financial observers interviewed by the Hedge Fund Law Report speculating about the agency’s ultimate purpose in collecting the data.

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