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MFA-backed study says EU short-seller naming hurts liquidity

Copenhagen Economics research for MFA finds public short-sale disclosure distorts investor behavior and raises barriers to capital formation.

At a glance

  1. The report, The Role of Short Selling in EU Capital Markets, says the disclosure requirements distort investor behavior and damage European capital markets.
  2. For managers and allocators screening European short strategies, the study supplies an industry-funded analysis of the liquidity cost of public short-sale disclosure.
  3. MFA announced the research from Brussels on Oct. 29.

European Union rules requiring public identification of short sellers weaken market liquidity and raise barriers to efficient capital formation, according to a Copenhagen Economics study commissioned by MFA.

The report, The Role of Short Selling in EU Capital Markets, says the disclosure requirements distort investor behavior and damage European capital markets.

For managers and allocators screening European short strategies, the study supplies an industry-funded analysis of the liquidity cost of public short-sale disclosure. MFA announced the research from Brussels on Oct. 29.

Reported by the Hedge Funds & Liquid Alts desk from MFA — Newsroom. Published . Corrections

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MFA-backed study says EU short-seller naming hurts liquidity