what is short selling? regulation – historical, current, proposed how does shorting affect the...
TRANSCRIPT
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