US financial regulators are considering new rules aimed at increasing transparency into the trading of the types of derivatives that bankrupted fund manager Archegos last month, according to a report by Bloomberg.
Citing “people familiar with the matter”, the Bloomberg report said Securities and Exchange Commission (SEC) officials were in early stages of a review that may lead to greater scrutiny of certain types of trading practices, such as high-risk derivative strategies and short selling.
The regulator will review whether such information can be included in existing filings, such as 13D forms (which institutional investors must file if they amass more than 5% of a company’s shares) or the 13F form (which firms with more than $100m under management must file quarterly to disclose their equity holdings).
It will also examine if such filings can be made more frequently so that officials can spot potential risk areas building up.
capital.com/sec-considering-more-transparency-on-derivatives-and-short-selling