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Hedge fund groups sue SEC in bid to invalidate short-selling rules

Image of the NY Stock Exchange and the Wall Street sign.
Photo: Spencer Platt/Getty Images

Julie DiMauro

3 min read
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Petitioners say the US regulator has not considered the impact its new rules on short sales will have on the securities markets.

Three hedge fund associations have sued the SEC, hoping to vacate two new rules aimed at boosting transparency of short selling. The risky trading strategy involves speculation, since the trader is counting on a stock’s decline.

The petitioner hedge funds are the Alternative Investment Management Association, the Managed Funds Association,

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