Publicizing Private Information

58 Pages Posted: 7 May 2012 Last revised: 13 Jun 2018

See all articles by Bige Kahraman

Bige Kahraman

University of Oxford - Said Business School; Centre for Economic Policy Research (CEPR)

Salil Pachare

U.S. Securities and Exchange Commission

Multiple version iconThere are 2 versions of this paper

Date Written: June 12, 2018


How does greater public disclosure of arbitrage activity and informed trading affect price efficiency? To answer this, we exploit rule amendments in U.S. securities mar- kets, which increased the frequency of public disclosure of short positions. Higher public disclosure can hurt the production of information and deteriorate efficiency, or it can be beneficial by helping short-sellers diffuse their information faster. With more frequent disclosure, information encapsulated within short interest is incorporated into prices faster, improving price efficiency. Furthermore, we find important reductions in short-sellers’ horizon risk, and increases in short-sales with the rule amendments.

Keywords: shorting market, public disclosure, price efficiency

JEL Classification: G12, G14

Suggested Citation

Kahraman, Bige and Pachare, Salil, Publicizing Private Information (June 12, 2018). Saïd Business School WP 2016-25. Available at SSRN: or

Bige Kahraman (Contact Author)

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
Great Britain

Centre for Economic Policy Research (CEPR) ( email )

United Kingdom

Salil Pachare

U.S. Securities and Exchange Commission ( email )

Division of Economic and Risk Analysis
100 F Street, N.E.
Washington, DC DC 20549
United States

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