I can’t find any good info, but it looks to me like we are just going to have a temporary ban on shorting some stocks (probably financials). Are we also banning swaps, forwards, etc.?
WSJ saying all stocks.
you cant short sell while being naked
Sounds like CFA Level 3 will have to be redesigned. To can still short with futures, I guess, but I’d market makers can’t hedge long futures with short stocks, those bid-ask spreads are going to be blown away way wide, I’d think.
“WASHINGTON – The Securities and Exchange Commission took its most aggressive assault against bearish stock bets by stating its intention to issue a temporary ban on short-selling. SEC Chairman Christopher Cox briefed Congress late Thursday of the agency’s intention to take the extraordinary step of interfering with the market’s regular functioning. Short-selling is a trading strategy of selling borrowed stock in hopes it falls and can be repurchased at a lower price. It’s unclear if the SEC’s intention has been approved …” Who approves SEC’s intentions?
Christopher Cox is in over his head. He needs to stop listening to academic theorists and spend a few months working on a trading floor. He doesn’t get it. Thats what you get for having politicians control wall street
comp_sci_kid Wrote: ------------------------------------------------------- > you cant short sell while being naked now it’s clear, and I can’t short sell right now
My mamma saw WillyR naked. He is short.
this link seems good: http://www.fsa.gov.uk/pubs/other/short_selling_faqs.pdf “6. Are there any exemptions to these new disclosure and prohibition rules? Only market makers are exempt - this term is not linked to the Handbook definition. Our view of market making for the purposes of this instrument is as follows: A market maker is an entity ordinarily as part of their business dealing as principal in equities, options or derivatives (whether OTC or exchange-traded) to fulfil orders received from clients, to respond to a client’s requests to trade or to hedge positions arising out of those dealings.”
As far as I understand it you cannot sell short. Naked or not. You cannot sell short.