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Hedge Funds

SEC puts hedge funds in crosshairs with stock lending disclosure push

The Securities and Exchange Commission is moving to bring greater transparency to the securities-lending market, where short-selling hedge funds borrow shares to bet against companies’ stocks.

A new rule proposed by the SEC on 18 November would require firms that lend securities to report data on each loan to an oversight body such as the Financial Industry Regulatory Authority within 15 minutes of making the loan. Data on the loans would be made public.

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