The SEC Delays Implementation Deadline of Controversial Short Selling Disclosure Rule Once Again
BlockBeats News, December 4th, the U.S. Securities and Exchange Commission (SEC) has postponed for the second time the deadline for the highly anticipated short selling and related stock loan disclosure rule. According to the guidance issued by the SEC, large investment management institutions (including hedge funds, etc.) have had the final deadline for complying with the short selling reporting requirement extended to January 2, 2028, and the disclosure obligation for stock loan transactions has been postponed to September 28, 2028.
The SEC stated: "The Commission believes that these temporary exemptions are in the public interest and consistent with investor protection goals." In October 2023, the SEC introduced new rules requiring eligible asset management institutions to report short positions monthly, while pension funds, banks, and institutional investors lending their held shares are required to submit reports the next trading day.
In August, the U.S. Fifth Circuit Court of Appeals ruled that the SEC failed to adequately assess the economic impact when formulating the rules and ordered the agency to reevaluate. SEC's sole Democratic commissioner, Allison Herren Lee, stated, "We are using compliance date extensions as a fig leaf to cover up a new trend: constantly twisting the rules until they break, eroding the foundations of the rule of law." (Golden Finance)
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