SEC considering more transparent derivatives and short selling rules

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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.

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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).

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It will also examine if such filings can be made more frequently so that officials can spot potential risk areas building up.


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