Hedge Funds Win Review of SEC’s Short Sale Disclosure Rule

A federal appeals court ordered a review of US Securities and Exchange Commission rules that required investors to reveal far more about short selling and related stock lending.

A three-judge panel of the 5th US Circuit Court of Appeals issued a ruling Monday stating that the SEC failed to consider the cumulative economic impact of the disclosure rules before approving them. The court sent the matter back to the commission to reconsider.