During times of market turmoil, market regulators are often called upon to ban short selling. This paper considers a number of arguments commonly used to justify banning, which revolve around issues of volatility, stability, market abuse and settlement disruption. A literature review focusing on the 2008 period provides little evidence to support these arguments against short selling, suggesting that regulators should be circumspect when considering any future bans.
|Number of pages||8|
|Publication status||Published - 2012|
- Equities market
- Securities lending
- Short selling