NEWS

CPIC SEC Uptick Proposal Comments, June 19, 2009

June 19, 2009
Re: File No. S7-08-09; Rel. No. 34-59748
Amendments to Regulation SHO
Dear Chairman Schapiro:
The Coalition of Private Investment Companies (“CPIC”) is pleased to submit its comments regarding the above-referenced proposal of the Securities and Exchange Commission (“SEC” or “Commission”) to limit short selling, through several proposed alternative amendments to Regulation SHO. We understand the Commission [...]

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New Paper: No Price Pop from Short Selling Ban

From the Wall Street Journal blog, June 16, 2009
A new paper by a trio of finance profs looks at the SEC-imposed ban on short-selling of certain financial stocks that surprised the market last September. The ban was put in place in hopes of restoring order to a market wracked by turmoil and confusion. Here are [...]

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Economist: SEC Proposals Will Make Little Difference

A Short Respite for the Short-sellers
The Economist, June 17,2009
The SEC’s proposed revival of restrictions on shorting is likely to have a limited effect
IN 2007 America’s Securities and Exchange Commission (SEC) decided that it no longer needed to restrict short-selling—the practice of borrowing shares and selling them in the hope of buying them back later at [...]

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CPIC Thoughts On Systemic Risk Regulation

Basic Principles
1. Regulation Based Upon Activities, Not Actors and Scaled to Size and Complexity
a. Regulatory scrutiny should be triggered based upon any of the
following: the overall scale of market participants, relative
importance in a given market or markets, complexity of corporate
structure and complexity of financial instruments used for
investment or dealer purposes.
b. All participants undertaking the [...]

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Stiglitz, Chanos Argue for Short Selling

Cara Parks, Huffington Post. Updated: June 4, 2009, 7:17 PM
Nobel prize-winning economist Joseph Stiglitz and Jim Chanos, president of Kynikos Associates, one of the largest short selling firms in the world, agreed today that short selling, which has been demonized by financial leaders and pummeled in the press, was not actually a major [...]

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‘No Supporting Evidence’ to Claims

Jun. 4, 2009. Post by John Carney, managing editor of Clusterstock.
Why has a bipartisan group of U.S. senators instructed the Securities and Exchange Commission to consider additional restrictions to curb “naked” short selling? Although there have been a lot of claims that abusive short selling contributed to our financial calamities, there’s been almost no [...]

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Law Prof: Short Selling Doesn’t Drive Down Prices

May 29, 2009 posting on Ideoblog by University of Illinois Law Professor Larry Ribstein:
As I’ve discussed, e.g., here, escalating attacks on short-selling are senseless and are threatening an important engine of market efficiency. Even moderates on short-selling have a problem with (non-covering) short sellers. As I discussed here, with help from Holman Jenkins, [...]

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