#Twitter ticker update

Musk on April 4 filed the SEC’s shorter form required of passive investors who do not intend to influence the company. Gellasch, who represents investors including the Arizona State Retirement System and CalPERS, wants the SEC to revamp ownership disclosure forms to eliminate distinctions between activist investors, who want to overhaul a company’s operations, and passive investors. Musk’s lawyer did not respond to a request for comment.

The agency declined to comment on Musk’s actions or the criticism of the proposed rule changes. The SEC confirmed in a filing Friday that is investigating the Musk disclosure. “If activists have no economic incentive to pursue activism, other shareholders will not experience the increase in value that would have otherwise resulted from the activist’s conduct - which they enjoy for free,” Richard Zabel, general counsel for activist hedge fund Elliott Investment Management, said in a letter to the SEC last month. Opponents of the proposal argue that cutting the disclosure window in half would chill attempts by activist investors to shake up companies, which they say can have broader benefits. Shortening the deadline would “add unnecessary costs” for investors seeking to comply, SIFMA said. “In our view, what has been billed as a ‘modernization’ of existing rules is actually a dramatic expansion of scope and obligations - many of which seem unrelated to a data-driven identification of problems requiring attention,” the Securities Industry and Financial Markets Association said in a comment letter on the rule last month. They are also pressing the agency to drop plans to change how certain financial derivatives count toward the 5 percent threshold and how groups are classified as beneficial owners. The agency is facing opposition from industry groups and hedge funds who want the SEC to leave the 10-day window in place. “I don’t think there’s any question that Musk’s secret accumulation of Twitter stock within the disclosure period and after the disclosure period proves how imperative it is to protect investors by shortening the length of time for and expanding the disclosure,” said Better Markets CEO Dennis Kelleher, who advocates for tougher Wall Street regulations. Bush, said the deadline should be “as close to ‘real time’ as possible.”

#Twitter ticker update

It’s part of a broader effort by the SEC under Chair Gary Gensler to update disclosure rules to keep pace with modern trading.įormer SEC Chair Harvey Pitt, who led the agency under former President George W. The SEC proposed shrinking the disclosure window to five days in February, saying it would reduce “information asymmetry” by informing the wider market more quickly about potentially market-moving information. “There are real shareholders on the other end of those trades, and is designed to protect those shareholders.” “What he is showing is the longer you have that you don’t have to disclose, the more stock you can buy from stockholders who don’t know what you’re doing,” Fisch said. Twitter shareholders have already filed a class-action lawsuit against Musk, alleging that he ripped them off to the tune of $143 million.

Musk’s actions highlight why the rule matters, said Jill Fisch, a business law professor at the University of Pennsylvania law school.

Healthy Markets Association executive director Ty Gellasch, a former SEC official. “Any delay whatsoever creates a huge opportunity for abuse and insider trading.” He took 21 days to report his stake after crossing that threshold. It set a 10-day timeline for big investors to disclose when they acquire at least 5 percent of a public company. The SEC rule at the center of the debate was last updated in 1968. Musk has said he does not respect the agency. The Musk-focused debate is the latest example of how the billionaire has challenged the authority of the SEC in recent years, raising fundamental questions about whether regulators can rein in powerful executives who break the rules. “Any delay whatsoever creates a huge opportunity for abuse and insider trading,” said Healthy Markets Association executive director Ty Gellasch, a former SEC official.