US equity market – Short selling: The naked truth

Fails to deliver in the US equity market have exacerbated the sharp declines in share prices of financials. Although the SEC is clearing up the mess caused by naked short-selling, more drastic measures might be needed to restore confidence. Helen Avery reports.

The treasury market reaches breaking point

In this article:
Unheard voices
Fails to deliver in the US stock markets
are not a new phenomenon. The SEC
has pussyfooted around enforcing
delivery in the US equity market over
the past 10 years or so.

Small steps
Actions taken against naked shorting
are steps in the right direction, but more
must be done.

IT IS NO surprise that the stock of Bear Stearns was heavily shorted in the run-up to its government-supported rescue in March, given its high leverage, poor risk management and the fact that its sub-prime bets had gone awry.

US equity market – Short selling: The naked truth

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US equity market – Short selling: The naked truth

Thanks for your interest in Euromoney!To unlock this article:

How banks can make cybersecurity a revenue generator

Awards for Excellence Middle East and Islamic Finance winners celebrate in Dubai

Regulators should be upfront with taxpayers – and admit all deposits are guaranteed

The FX Files: Is it the end of the line for single-dealer platforms?

Thanks for your interest in Euromoney!
To unlock this article: