Bans on short selling ripple through the global markets...

Hedge Funds News New York: The ripple effect of the initial US and UK bans on short selling of financial stocks rippled through markets around the globe this weekend:

• Taiwan’s financial regulator placed a ban on the short-selling of 150 stocks for 2 weeks starting September 22
  
• Dutch Finance Minister announced he has banned “naked” short selling of stock in financial institutions for the next three months to increase the stability of financial markets
  
• Australian Securities and Investments Commission expanded a curb announced last week outlawing “naked” short sales and now includes a ban on the more traditional form of “covered” short selling of all traded stocks
  
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US reactions
While the industry reacted positively to the US government’s actions to stem the panic which raced through the markets during the week, the ban on short selling of financial stocks has raised serious concerns. A review of the statements issued by various financial associations and companies has revealed that the SEC’s attempts to curb market manipulation were widely applauded. However, there are many pieces of the emergency order that will effectively tie the hands of the hedge fund industry, which has been an important source of market liquidity throughout the credit crunch of the past year.

Both The Security Traders Association of New York (STANY) and the Managed Funds Association (MFA) decried the requ......................

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Bans on short selling ripple through the global markets...


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