What is short selling? Regulation – Historical, Current, Proposed How does shorting affect the economy?
Covered short Naked short Option short Derivative methods of short
Hedge Funds Pension Funds and Insurance Companies Market Makers Investment Banks Individuals
Hedge Speculate Diversify Market Manipulation
What is short selling? Regulation – Historical, Current, Proposed How does shorting affect the economy?
Securities Act of 1933 – Rule 144, 144A Securities Exchange Act of 1934 – Rule 10a-1 “Tick Test” Regulation M Regulation T Regulation SHO
Great Britain – disclosure requirements Hong Kong – eligibility requirements Canada, Japan, HK – price restrictions Aus, CA, Japan, HK – flagging Japan – margin requirements
SEC › Uptick › Circuit breakers CESR › Pan-European Short Sell Disclosure Regime IOSCO › 4 principles › Decrease regulatory arbitrage › Increase transparency
What is short selling? Regulation – Historical, Current, Proposed How does shorting affect the economy?
Media perspective “Joe 6 Pack” perspective CEO perspective Analyst / economist perspective
Market Abuse and Manipulation Price Reversals Aggressive Short Selling Investor Confidence
Naked Shorts Outstanding Shorts Stock Sales Volume Shorts Overall ? Media Attention Investor Confidence Counterparty Confidence