Hedge funds associations' lawsuit against SEC short disclosure final rule

We are offering end-to-end position monitoring and filings with SEC, with full automation and provision of market data. Contact us for further details.

Law as it stands currently

Currently, as the law stands, all issuers are caught, including the non-U.S. issuers, and whether traded in the U.S. or not (excerpt). Three associations of hedge fund industry have sued SEC, questioning the validity of the final rule and there is particular focus on the coverage of non-U.S. trading

How we will deal with the situation

Until the courts resolve the matter, we will proceed as the law stands
We believe the disclosure requirements will remain, though their form may change, or implementation delays might happen. This is because the disclosure rules have their basis in the Dodd Frank Act
In our opinion, even if a relief is made available, the foreign issuers trading in the U.S. may be caught in any case (Morrison v. NAB case) but certainly a chance that foreign issuers not trading in U.S. may get excluded
Notwithstanding the lawsuit and how it settles, we have to continue with the implementation

Due to the dynamic, rules-based nature of the system, we will be able to change the coverage as the rule settles.

How we can help

This is the most complicated monitoring and reporting regime that we have seen and poses challenges across the monitor and report workflow. In our opinion, this is a monitoring challenge, and the actual reporting is a minor part of it. A lot of the market data points required are either not readily available or require extensive system and operational investment.

We will be able to source all market data internally, or allow clients to plug in their own data. We will monitor the portfolio, evaluate all positions as per rules, prepare reports, get user approval, lodge the filings with EDGAR and confirm back to you.

However, our implementation focus is our existing clients who use our service for Global Monitoring and Reporting. If you are interested in onboarding, we strongly suggest that you engage today. We will not be able to onboard clients closer to the deadline due to the complexity of the implementation.

Resources