No US short selling ban
15 August 2011 New York
Image: Shutterstock
The US will not be following in the footsteps of four European nations which banned short selling activities last week.
An SEC spokesman said that safety triggers are already in place when a stock is experiencing significant downward pressures, wrote Bloomberg.
The short selling ban in France, Italy, Spain and Belgium followed curbs on the practice in Turkey, Korea and Greece as global markets plunged over economic growth and US and European debt concerns.
Research on the European short selling ban from Data Explorers (DX) shows that, throughout 2011, the average percentage of stock on loan for the stocks affected by the ban is below the market average in each country with the exception of Italy, where data are skewed by a very large outstanding loan. The data also suggest low institutional ownership of the named financial stocks, wrote DX. Among France-based companies affected were Societe Generale, AXA and BNP Paribas.
An SEC spokesman said that safety triggers are already in place when a stock is experiencing significant downward pressures, wrote Bloomberg.
The short selling ban in France, Italy, Spain and Belgium followed curbs on the practice in Turkey, Korea and Greece as global markets plunged over economic growth and US and European debt concerns.
Research on the European short selling ban from Data Explorers (DX) shows that, throughout 2011, the average percentage of stock on loan for the stocks affected by the ban is below the market average in each country with the exception of Italy, where data are skewed by a very large outstanding loan. The data also suggest low institutional ownership of the named financial stocks, wrote DX. Among France-based companies affected were Societe Generale, AXA and BNP Paribas.
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