Investor group admonishes SEC

VIENNA, Va., Oct. 7 (UPI) -- An investor trade group Tuesday said the U.S. Securities and Exchange Commission's recent rules change on short selling is flawed.

Short selling is a trading mechanism in which investors borrow financial assets on a bet the value will decline, paying for the assets at a later date.

In a statement, the National Investor Relations Institute expressed its "disappointment" in the SEC's short selling decision that did not require investment managers to "publicly disclose short sale positions of certain publicly traded securities."

"NIRI supports public disclosure of the short positions in the securities of the companies affected by the SEC's emergency order as well as the securities of all public companies," the statement said.

"NIRI strongly advocates for greater transparency within the investment community," the statement said.

"As we look beyond the federal rescue plan … we must begin to correct the failures of our financial regulatory system," said Jeff Morgan, president and chief executive officer of NIRI.

"I find it unacceptable that I can receive my personal brokerage statement within 10 days after month-end, but investment managers require 45 days to report their holdings at the end of a quarter to the SEC," he said.