Big Hedge Funds Face New 72-Hour Deadline to Report Losses (3)

The US Securities and Exchange Commission wants to be let in on some of Wall Street’s most confidential information — and quickly.

In a first, the SEC is going to require big hedge funds to share with regulators major investment losses in near real-time.

The rule, approved Wednesday, marks a significant shift for an industry that tends to prize its secrecy. It also promises to add to businesses’ administrative headaches. Until now, funds have generally had to report positions in quarterly public filings.

The investing public, in theory, won’t be any wiser. Only the SEC will be notified, privately, when ...