Peter Gallagher

“Liq­uid­ity in the restricted stocks fell by about 10 per cent com­pared with a rise of 50 per cent in trad­ing vol­umes in the con­trol sam­ple, and trans­ac­tion costs rose by 150 per cent com­pared with the con­trol sam­ple. A sep­a­rate study by Cass Busi­ness School found that volatil­ity of restricted stocks rose sig­nif­i­cantly more dur­ing the ban than volatil­ity of unre­stricted stocks.” extract from an Op Ed in the Finan­cial Times

If this is accu­rate, the Aus­tralian Secu­ri­ties and Invest­ment Com­mis­sion offers pre­cisely the wrong jus­ti­fi­ca­tion for extend­ing its still more dra­con­ian ban on short-selling until 6 March.