NYSE Wants to Shorten 13F Filing Deadline to 2 Days
NYSE Euronext has petitioned the SEC to shorten the Form 13F filing deadline from 45 days after each quarter to 2 days. Rule 13f-1 requires institutional investment managers – those with investment discretion with respect to more than $100 Million in publicly-traded securities – to file a quarterly Form 13F listing their holdings. According to NYSE Euronext, the original intent of the rule was to increase market transparency for other investors and shareholders because so much equity is held in street name. NYSE Euronext says that modern technology allows institutional mangers to file more quickly. Also, more timely filings will prevent misleading delays in information. NYSE Euronext would also like the SEC to seek a legislative change to require more frequent filings.
OUR TAKE: This is a political fight between large companies and activist shareholders. Large issuers want quicker data on institutional investors to act strategically with regard to corporate actions. Activist shareholders such as hedge funds sometimes use the timing delays to their benefit during proxy battles. Our view is that the vast majority of institutional investors are not activist investors, and the 13F filing is yet another compliance nuisance that really doesn’t benefit anybody.