Hedge Fund Acknowledges Technical Error in HSBC Short Position Disclosure

The filing appeared to disclose a short position in HSBC (HSBA.L) shares, which, in reality, the hedge fund did not hold.

Hedge fund Qube Research & Technologies (QRT) issued a statement on Friday, acknowledging a technical glitch that resulted in an inaccurate filing with the United Kingdom’s financial regulator.

The filing appeared to disclose a short position in HSBC (HSBA.L) shares, which, in reality, the hedge fund did not hold.

Earlier in the day, both The Financial Times and Reuters, along with other media outlets, reported that QRT had taken a substantial £672 million ($835.43 million) bet against HSBC shares.

This information was sourced from publicly available daily data provided by the Financial Conduct Authority (FCA).

According to the data seen by Reuters on Friday, Qube Research & Technologies had initiated a short position equivalent to 0.57% of HSBC’s outstanding shares on Tuesday.

However, in an updated version of the data that Reuters reviewed at 1800 GMT, there was no mention of this position.

Stuart Brown, the Chief Operating Officer of QRT, clarified the situation, stating, “The FCA filing was made erroneously due to a technical issue and is currently being corrected with the FCA.

Please note that QRT do not have a net short position in HSBC.” Although Brown did not provide details on how the technical error occurred, he mentioned that Qube was actively investigating the matter.

In response to inquiries about the incident, a spokesperson for HSBC declined to comment, while the FCA had not yet responded to requests for comment regarding any potential actions it might take.

It is important to note that a short position in a company’s stock signifies a wager that the stock’s price will decrease.

In accordance with FCA regulations, investors are required to disclose short positions to the regulator when they reach 0.2% of a company’s outstanding stock.

However, earlier in the year, the watchdog relaxed the requirement for short sellers to publicly announce such positions.

In conclusion, the disclosure of a short position by Qube Research & Technologies in HSBC shares was deemed inaccurate due to a technical issue, and the hedge fund is working to rectify the situation with the FCA.

This incident underscores the importance of accurate and timely reporting in financial markets.