'Short-selling of financial stocks is to be banned in the United Kingdom from midnight on Thursday night under rules drawn up by the Financial Services Authority.
The ban, which has been approved by the watchdog’s board of directors, will prevent investors from creating or adding to short positions in all publicly quoted financial companies. The ban will remain in force until January 16, 2009, when the FSA plans to publish a comprehensive review of short-selling rules.'
In a market you can't stop forward deals. Markets include exchange of assets over time, even if the assets are not yet there to sell. London will no longer have a market from midnight. (And the only way to close a market is to shut it instantly, otherwise havoc could be unleashed unnecessarily for three hours.)
After thought
This is corporatism pure and simple. Corporatism of a nazi/fascist brand. Private property but state guaranteeing and monstrous bullying. Be very afraid.
Subscribe to:
Post Comments (Atom)
Posts
9 comments:
you and me both, HG, this is disturbing stuff
let's see exactly how far they take this in the changes to the Code being published tomorrow - hope it's on the website (alarm clock being reset). If they restrict it to actual share-certificate style shorting, that's one thing - but CFDs ?
Afterthought: maybe they don't care about CFDs ...
Both are a gross interference with the market, but yes, it's a matter of degree.
As I am supposed to be on the 7.15 to Rome to hear all about poverty, what it is and what is to be done (any tips will be shared with the newly impoverished reading Angels, or do I mean newly impoverished Angels?) I have set the alarm clock too.
I don't understand *how* they can do this. It would surely just drive trading underground or abroad?
Sounds of chops being licked elsewhere presumably, Blue. But until the changes are set out, (see ND) it's hard to think what they think they are doing.
PS I have an abiding and deep conviction of Brown and Co's complete and destructive incomprehension and, hence, incompetence.
the idea is to screw the hedgies. To some extent I see the point, even though I would not do it. The hedgies have lost so much this year they are operating like a pack to try keep going.
anyone can go short with a spreadbet. the market exists.
Good you set the alarum clock, HG. L's daughter had to get up early 2 or 3 days back. so I popped an alarm clock on her desk the night before.
Complaint the next day - we hadn't set it for her, so it didn't go off.
Teenagers ...
no, CU, they've swept up spread-betting too, and CFDs etc (see this morning's detailed rules)
which answers my question of last night
as it happens, though, there is a threshhold of a quarter-percent of the bank's share capital, so retail shorts can carry on (if anyone will take the order)
when Blogger will let me ... I will be posting briefly on this today
I was real angry when I saw this last night.
It's a massive fraud. The government are picking a scapegoat to hide the real problems with the system.
Post a Comment