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

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