WASHINGTON—Investors who make big bets against company stocks could soon have to report more information about their positions to the Securities and Exchange Commission.
The SEC proposed rules Friday aiming to increase transparency around “short selling,” whereby traders borrow company shares and then sell them in hopes of buying the stocks back at a lower price in the future. The commissioners, three Democrats and one Republican, voted unanimously in favor of the plan. The rules could be finalized after the agency receives and analyzes feedback from the public.
