MFA Letter on Quarterly Reports and SEC Roundtable on Short/Long-Term Management of Public Companies

September 06, 2019

From: MFA


Securities and Exchange Commission

On September 6, MFA submitted a letter to the SEC in response to its request for comment on earnings releases and quarterly reports and the Roundtable on Short-Term/Long-Term Management of Public Companies.

In the letter, MFA makes the following points:

  • (i) short-term investing is an important component of healthy capital markets and regulation should encourage all types of investment activities and strategies to efficiently provide capital to businesses and opportunities to investors;
  • (ii) regular, quarterly reporting of material information by public companies serves both companies and investors and ensures that investors have access to timely information to inform their investment decisions; and
  • (iii) short selling is a long-standing and necessary part of well-functioning capital markets, the SEC carefully regulates short selling activity, and the existing aggregate disclosure requirements for short positions are appropriate given the distinct natures of short and long positions and the potential negative effects of individual short position reporting on investors and companies. We also have attached our short selling white paper to provide a full discussion of the benefits of short selling, and explain the policy reasons underlying different disclosure frameworks for long positions and short positions.