NYSE, Nasdaq Slam SEC Plan to Cut Hedge Fund Holding Disclosures

The SEC is facing backlash from the New York Stock Exchange and Nasdaq Inc. over an agency proposal that would let managers of thousands of hedge funds and other investment products avoid reporting their stock holdings.

The absence of disclosures on equity holdings would deprive companies and investors of information they use to make decisions about shareholder engagement and investments, NYSE and Nasdaq wrote in opposition to the Securities and Exchange Commission plan as part of a comment period that ended Sept. 29.

The exchanges were among several organizations, including trade groups that represent investment funds, that raised at least ...