NEWS

Data Explorers’ long-short ratio stands at a two-year high, with equity short selling significantly below levels seen two years ago. “At just above $630bn, equity short selling is somewhat short of April’s peak of $800bn, which coincided with the peak in global equities,” the firm’s press release (July 26) reported.

Singapore Management University Finance Professor Melvyn Teo argues that the European Union’s proposed hedge fund rules (Alternative Investment Fund Managers Director) will “hurt the very hedge fund investors [the EU regulations] were designed to protect.”
In his essay (“EU Hedge Fund Rules May Hurt Investors,” July 28, Business Times), Teo outlines three areas where EU [...]

The German parliament has adopted a new statute effective today. The statute introduces the following measures:
· Prohibition on naked short selling. Applicable to all shares admitted to trading on a German regulated market and the debt instruments issued by a Euro zone country and admitted to trading on a German regulated market. [...]

WASHINGTON, D.C., July 15, 2010 – The Coalition of Private Investment Companies (CPIC) issued the following statement today after the final passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act:
“The Dodd-Frank Act is a sensible approach to private investment company regulation, addressing generally the needed reforms we outlined in Congressional testimony,” said [...]

Researcher Melissa Porras Prado (RSM Erasmus University) looked at (“The Price of Prospective Lending: Evidence from Short Sale Constraints,” June 14) at how security prices incorporate future lending profits earned from lending shares to short sellers. “The results from this study imply that short selling constraints can cause prices to deviate from the [...]

In an interview with the Financial Times (“Europe Needs a Stronger Corporate Bond Market,” July 9), the head of France’s securities regulator said more constraints, rather than a ban, consistently imposed throughout the EU would address naked short selling problems.
“Banning short-selling is politically on the table but technically it is not possible and inefficient [...]