Activist short sellers provide a valuable service to the markets and regulation currently being considered that might require them to disclose their short positions should be carefully considered, according to a report by a Boston University researcher.
SEC should consider short sellers to disclose their positions
Currently, U.S. securities law does not require short sellers to disclose their positions, the report notes. Given the motivation for market some market observers have recommend that Congress and the Securities and Exchange Commission (“SEC”) explore whether to implement filing requirements for investors that hold large shorts positions.
When considering potential multi-million dollar profits available to short selling investors juxtaposed against the...

