UK hedge fund managers have reacted angrily to the Financial Services Authority's new disclosure rule on the short-selling of stock whose issuer is undergoing a rights issue, which were announced this morning and will take effect in a week's time.

The Alternative Investment Management Association, a trade organisation that represents the hedge fund industry, said it was disappointed with the FSA's move: "The FSA has set an awkward precedent. The industry is surprised this measure has been introduced without any prior consultation, giving the industry almost no time to prepare. This seems to be a rushed measure."