After a year of deliberation, the SEC finally began its campaign to reform the practice of short selling by amending Regulation SHO. While changes enacted to Reg SHO have been incremental thus far, there are rule proposals that could potentially lead to a substantial overhaul of the Regulation. The impact of these regulatory changes will be felt by hedge funds and institutional investors who rely on the technique of short selling to hedge their market position. Purchase this webinar archive to learn about the SEC’s stance on short selling and the implication it will have on your investment strategies.

The SEC has adopted sweeping changes to its regulation of short selling. For example, price tests for short sales are gone, but some short sellers will be banned from purchasing in secondary offerings. This section describes the changes and the challenges for short sellers.

Historically hedge funds have operated outside of government control and regulation, resulting in increased flexibility for the managers, but decreased safeguards for investors. Short selling by hedge fund managers has become a mainstream practice and a common strategy. In this section, Michael MacPhail, former SEC enforcement official, discusses the SEC’s recent efforts to reduce abusive short selling, and the ongoing controversy over their attempted regulation of hedge funds.

In 2005, the SEC proposed rules requiring hedge funds to register as investment advisors. The regulations were intended to provide greater transparency and protection for investors. Final regulations have not been implemented but recent events suggest it could become a priority for the SEC. This presentation discusses the proposed rules and their implications for unregistered funds, and gives practical steps hedge fund managers should be taking now to prepare for increased regulation.

Click here to purchase archive access, or call (516) 876-8006.