The SEC’s emergency regulation, announced by chairman Christopher Cox Tuesday July 15th, aims to limit some types of short selling to eliminate “unlawful manipulation through naked short selling that threatens the stability of financial institutions.” Euromoney's coverage of past regulations and questionable events is worth a look today.
When the US SEC announced in July that it would impose a 30-day ban on illegal naked shorting in 19 stocks, some hedge funds were up in arms.
by Peter Koh, Helen Avery
Shareholders and executives in some of the US's smallest listed companies believe their share prices have been forced down by illegal naked shorting. This has led to a number of lawsuits, claiming unscrupulous behaviour by brokers and market-makers exploiting loopholes in the central clearing system. Those implicated dismiss the allegations as rubbish. What's going on?
- Larry Thompson: Defending the DTCC
The SEC has amended legislation in a belated effort to clamp down on naked short selling. But it remains under pressure from a lobby group that ranges from senators to lawyers, and management to shareholders, who believe the new rules are having little effect.
by Peter Koh
Thousands of US stocks are being traded on a little-known Berlin exchange, without the knowledge of many of the companies involved. Have the naked short sellers exported their practice overseas?