The Investment Company Institute, along with the UK's Investment Management Association and Australia's Investment and Financial Services Association, has released a combined statement in support of prudent regulatory oversight of short selling.

"Short selling plays a crucial role in legitimate active investment strategies and risk management activities designed to enhance performance and maximize returns to investors. It also contributes to market liquidity, reduces transaction costs and assists to ensure pricing efficiency," said the statement signed by the three CEOs of the associations. "We are opposed to public disclosure of short selling information, which has the potential to increase downward selling pressure, facilitate the front-running of a fund's security positions and reduce the incentive for proprietary research."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.