Investor confusion over FSA shorting rules

Almost half of the disclosures by hedge funds since the
Financial Services
(FSA) introduced changes to the rules, which forced them to
disclose short positions in companies holding rights issues, have contained
errors as the funds struggle to get to grips with complex calculations.

According to analysis by the Financial Times, 20 of the 41
disclosures so far have missed filing deadlines, contained the wrong
calculations or not been required.

The mistakes started with the first filing, put in a day before it was
needed, which declared a short position in a company not doing a rights issue.
Elgin Capital, the London hedge fund manager, later withdrew the notice, saying
it was issued in error.

Other mistakes included missing the 3.30pm deadline. Filings ranging from
four days late – by Bridger Management, short
Bradford &
– to four minutes in the case of Cheuvreux, whose clients are short
0.283% of Crédit

Further reading:

the Financial Times story

Related reading