Evidence that shorting ban “a mistake”

“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.

No Comments

Leave a Reply

Your email is never shared.Required fields are marked *