SEC Punts Controversial Short-Sale Disclosure Deadline Again

Core Viewpoint - The US Securities and Exchange Commission (SEC) has delayed the compliance deadlines for hedge funds and large investors regarding new disclosure rules for short selling and stock lending, extending the deadlines to January 2, 2028, and September 28, 2028, respectively [1][2]. Group 1: SEC Actions and Regulations - The SEC's decision to delay compliance is characterized as necessary for public interest and investor protection [1]. - The new rules, issued in October 2023, require certain investment managers to report short-sale data monthly, with pension funds, banks, and institutional money managers required to report stock lending transactions the following day [2]. Group 2: Industry Reactions - Trade groups such as the Managed Funds Association and the Alternative Investment Management Association have legally challenged the SEC's rules, arguing they exceed the agency's authority and lack consideration of economic impacts [3]. - AIMA expressed satisfaction with the delay, viewing it as a relief for market participants while the SEC reassesses its approach [4]. Group 3: Internal SEC Perspectives - SEC Commissioner Caroline Crenshaw has voiced concerns regarding the delay, labeling it as a potential indefinite postponement of compliance and suggesting it undermines the rule of law [5][6].