The International Securities Lending Association and the
Alternative Investment Management Association have
independently expressed concern about the proposed
short-selling disclosure regulations announced by the European
Commission today (15 September).
Under the tougher rules, managers would be required to
notify authorities of any short position exceeding 0.2% of
issued capital, and to inform the market of positions exceeding
0.5%. But ISLA believes this is too stringent and would
threaten market efficiency.
ISLA supports transparency measures that create disclosure
symmetries with long positions, including private disclosure to
regulators and anonymised reporting of aggregate positions, but
it argues that the 0.5% threshold for public disclosure