Tag:
short selling
Latest Headlines
Latest Headlines
Banks struggle with Reg SHO
It's becoming clear that not all companies are having an easy time with Reg SHO, which was designed to curb abusive shorting selling practices.
In a nutshell, broker-dealers are faced with a request by a customers to short a stock, must provide "locates,"--assurances that "it has borrowed, arr
Alternative uptick rule generates ire
In February, as a direct response to the May 6 Flash Crash, a new short selling rule went into effect, the alternative uptick rule. This rule requires that if a stock drops 10 percent from its previous close, then the short selling in that security will only be allowed if the selling occurs above
Securities lending backfires on banks
Securities lending has a reputation as a sleepy sort of backwaters on Wall Street, rife with rough-and-tumble practices as unsavory brokers search for shares that can be lent.
Wall Street banks, sensing opportunity, created programs that called for big institutional clients, mainly pensions an
Stock loan trader charged
The boom in short selling ( short selling news) prior to the financial crisis led to a fairly severe shortage of stock to be loaned, which gave rise to a rough-and-tumble cottage industry on Wall Street that seemed at times almost Mafioso. Stock loan finders flourished, and they were held almos
A decision on short selling curbs
Several proposals to curb short-selling have been discussed over the past year. I think most people were betting that a modified uptick rule was going to be passed . The issue really was whether some sort of circuit breaker was also going to be used to trigger the rule. The SEC has apparently m
Time to tweak short selling systems?
There has been no shortage of changes to the short-selling rules over the past year or so. The financial crisis and the subsequent financial stock meltdown led to all sorts of temporary bans and other restrictions--which generated the need for technology tweaks at many firms .
There has bee
New idea to curb shorting
The SEC has suggested a new approach to curb short selling. In addition to the five previous ideas it has submitted for public comment, it has just submitted another one, reports the New York Times .
The latest idea is that short sales only be executed at a price higher than the current bes
Short selling curbs to be delayed?
What to make of short selling curbs? Not too long ago, it seemed liked new curbs would be passed this year, a response to the short selling that sparked so much outrage from companies like Morgan Stanley and Lehman Brothers. But now that the meat of the crisis has been digested, I'm not so sure th
Uptick rule: Who's for it? Who's against it?
Reuters said this about the SEC's meeting on Tuesday about short selling: "Financial professionals, academic experts and the U.S. broker-dealer watchdog agree the Securities and Exchange Commission should not reinstate its old uptick rule to regulate short selling..."
But here's what the
What to make of short-selling proposals?
Well, we all knew that new regulations were coming on short selling. Last week, the SEC put forward five potential methods to control short selling and asked for public comments. One of the proposals, of course, is the traditional uptick rule, which allows short sales if the last sale lifted a
