MFA Supports FINRA’s Effort to Improve Aggregated Short Interest Reporting and Publication

 

September 30, 2021

Corbett: “FINRA’s effort to improve aggregated short interest reporting and publication will provide accessible, useful data to investors while supporting fair and transparent markets without harming individual investors.”

WASHINGTON, DC –Managed Funds Association (MFA), the trade association for the hedge fund and global alternative investment industry, submitted its comments to the Financial Industry Regulatory Authority (FINRA) regarding proposed enhancements to FINRA’s short sale reporting program. MFA endorsed FINRA’s efforts to increase transparency but urged against requiring the reporting of individual short interest position information.

“FINRA’s effort to improve aggregated short interest reporting and publication will provide accessible, useful data to investors while supporting fair and transparent markets without harming individual investors,” said Bryan Corbett, President and CEO of MFA. “Enhancing short interest position information without mandating manager-level disclosures would be an important step in safeguarding market integrity and promoting healthy markets.”

Highlights of MFA’s comments to FINRA include:

  • MFA Supports the Publication of Consolidated Short Interest Data: Market participants would benefit from being able to access aggregate short interest data for listed and OTC equity securities at a single source.
  • MFA Supports Increasing the Frequency of Aggregated Short Interest Position Reporting and Publication: Regular reporting and publication ensure that investors have access to timely information to inform their investment decisions.
  • MFA Does Not Believe that Individual Account-Level Information is Necessary: FINRA already has access to this data for forensic purposes, and the creation and reporting to FINRA of this information greatly increases the risk of inadvertent disclosure and data theft.

MFA’s comments to FINRA can be found here.

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About the Global Hedge Fund and Alternative Investment Industry 

The global hedge fund and alternative investment industry, including hedge funds, credit, managed futures, and private investment firms, has assets under management of $4.1 trillion (Q1 2021). The industry serves thousands of public and private pension funds, charitable endowments, foundations, sovereign governments, and other global institutional investors by providing portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets. 

About the Managed Funds Association 

Managed Funds Association (MFA) represents the global hedge fund and alternative investment industry and its investors by advocating for regulatory, tax, and other public policies that foster efficient, transparent, and fair capital markets. MFA’s more than 140 member firms collectively manage nearly $1.6 trillion across a diverse group of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors to diversify their investments, manage risk, and generate attractive returns over time. MFA has a global presence and is active in Washington, London, Brussels, and Asia. www.managedfunds.org