The Securities and Exchange Commission has again delayed the implementation of its controversial short-selling disclosure rules

The Securities Exchange Commission (SEC) has postponed for the second time the deadline for high-profile short-selling and related short-selling disclosure rules. According to the SEC's instructions, the deadline for large investment managers, including hedge funds, to comply with short-selling reporting requirements has been extended to January 2, 2028, and the obligation to disclose short-selling transactions has been postponed to September 28, 2028. "The Commission believes that these temporary exemptions are in the public interest and consistent with investor protection objectives," the SEC said. The SEC introduced new rules in October 2023 that require eligible asset managers to report their short-selling positions on a monthly basis, while pension funds, banks and institutional investors must submit reports the next day if they lend their holdings. In August, the U.S. Court of Appeals for the Fifth Circuit ruled that the SEC had failed to adequately assess the economic impact of its rules in making them, and asked the agency to reconsider. Crenshaw, the SEC's lone Democratic commissioner, said we are using compliance date extensions as a cover to hide a new tendency to bend rules until they expire, which is eroding the very foundation of the rule of law. (Jin Ten)