An incisive collection of ten key articles, from across the Euromoney Institutional Investor PLC group. "Short Selling – In Focus"
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What's included in this collection?
Naked shorting: Funds up in arms about short-selling ban - Euromoney Magazine
When the US SEC announced in July that it would impose a 30-day ban on illegal naked shorting in 19 stocks, some hedge funds were up in arms... (371 Words)
Regulate short selling or not? - International Financial Law Review
The US SEC did better with its short selling regulation than the UK Financial Services Authority (FSA), according to lawyers on both sides of the Atlantic. But only just: 29% thought the SEC's actions were entirely wrong and 57% thought the regulation would only work as a short-term measure. This is not a great response, but unfortunately for the FSA, 100% of lawyers thought either its actions or methods were wrong. (809 Words)
Asia Corporate Counsel Poll: Just too many laws - International Financial Law Review
Companies in Asia are stretched. A flood of new legislation has increased the burden of compliance, taking up time and resources that should be spent improving corporate governance standards. With the market distressed, investors are looking for clues to the next casualty, and there is a danger that poor corporate governance could attract both short selling and activist hedge funds. (3,509 Words)
Enter the regulators - International Securities Finance (ISF)
On 13 June the Financial Services Authority (FSA) released a statement detailing new rules on the disclosure of short positions in companies undertaking rights issues. This announcement was widely received with surprise by the industry that struggled to understand why the rules had been implemented without any market consultation. (741 Words)
HBOS rights issue: Nailing the blame game - Euromoney Magazine
Even summer sale prices with almost 50% reductions turned out to be not quite generous enough to entice investors to take up their rights in HBOS's dismal issue. The failure of the HBOS deal, and the difficulties facing other British banks seeking to raise capital, have focused attention on to the role of shorting during rights issues. (550 Words)
Future of UK rights issues wide open as FSA considers reforms - EuroWeek
Equity capital markets practitioners hoping for rapid changes to the structure of UK rights issues in the wake of problems with HBOS, Bradford & Bingley and others in recent months look set to be disappointed — the Financial Services Authority is unlikely to act for many months. (2,280 Words)
Rights: A question of rights - Euromoney Magazine
FSA forces disclosure of significant short positions in companies undertaking rights issues while issuers look for a quicker route to market. (785 Words)
The wheels come off - International Securities Finance (ISF)
Are 130/30 products truly a way to harness a vast untapped potential of expertise, or just another fad that like all fads, may have just a kernel of truth embedded deep within? What is clear is that many long only fund managers as well as hedge funds are jumping onto the 130/30 bandwagon, which for many institutional funds, may not necessarily be driving them to anywhere sensible. (2,746 Words)
ISLA responds to FSA disclosure regime on short selling - International Securities Finance (ISF)
Following the recent Financial Services Authority (FSA) amendments regarding the disclosure of short positions, ISLA chairman David Rule sent this letter of response. (1,364 Words)
FSA answers questions on short selling code of conduct - International Securities Finance (ISF)
Since the announcement of the Financial Service Authority's (FSA's) surprise provisions in its Code of Market Conduct requiring the disclosure of significant short positions in stocks of companies that are undertaking rights issues, it unsurprisingly has received several queries relating to how the disclosure regime will operate in practice. In response to this, the FSA have produced a set of frequently asked questions and answers which are set out in this article. (1,863 Words)