Ban of short selling of financials lifted

[Average Joe]

http://www.asic.gov.au
"Key details

Covered short sales of financial securities will be permitted from opening of trade from 10am on 25 May 2009.
The daily reporting of gross short sales will continue as will the publication to the market of aggregate short sales the day after trading."


Some downside momentum expected?

 

[skyQuake]

Upside?

 

[Timmy]

http://www.asic.gov.au/ASIC/

Some downside momentum expected?

Link doesn't work

 

[Real1ty]

Link doesn't work

http://www.asic.gov.au/ASIC/asic.ns... selling of financial securities?opendocument

09-94 ASIC lifts ban on covered short selling of financial securities

Monday 25 May 2009


ASIC today said it would lift the current ban on covered short selling of financial securities from 10am on 25 May 2009.

Covered short selling of securities was temporarily banned on 21 September 2008 in circumstances of extreme market volatility. ASIC lifted the ban on covered short selling of non-financial securities on 19 November and advised the market on 5 March 2009 that the ban on short selling of financial securities (as defined in AD08-65 ASIC lifts ban on covered short selling for non-financial securities of 13 November 2008) would continue until 31 May 2009. ASIC advised this position would be kept under review.

ASIC has reviewed market conditions and considers that the balance between market efficiency and potential systemic concern has now moved in favour of the ban being lifted.

In reaching this view, however, ASIC notes that the global financial crisis and global recession continues to place pressure on Australia's markets. ASIC will not hesitate to reimpose the ban immediately (using its enhanced and clarified powers under the Corporations (Amendment) Short Selling Act 2008) and without consultation if it considers market conditions warrant such action. ASIC will, in its monitoring of the market along with ASX, pay particular attention to short selling activity by participants (including activity by hedge funds and similar institutions) which could potentially harm Australia's financial system.

Reporting and disclosure
The daily reporting by market participants to ASX of gross short sales will continue as will the publication to the market of aggregate short sales the day after trading.

This disclosure regime will operate until the commencement of the Government's permanent disclosure measures.

ASX has been working towards implementing the software capability to support real-time tagging of short sales in the Integrated Trading System. The aim of tagging is to make reporting by market participants more efficient by automating the reporting of short sales to the ASX. The software was available from Monday 18 May 2009. However, manual reporting of total daily gross short sales will continue until tagging becomes mandatory under ASX’s Market Rules. Market participants should refer to ASX’s ITS Circulars for more information.

Key details

1. Covered short sales of financial securities will be permitted from opening of trade from 10am on 25 May 2009.
2. The daily reporting of gross short sales will continue as will the publication to the market of aggregate short sales the day after trading.

 

[Timmy]

http://www.asic.gov.au/ASIC/asic.ns... selling of financial securities?opendocument

Thanks Real1ty

 

[MRC & Co]

Looks like a few shorts going onto the banks today, probably long on commodities also.

Wonder though if after a few days of shorts going on, if we will get a short squeeze so some of the bigger guys can get better fills?

Should be good to watch and I hope so, so I can get some on myself at a bit higher prices.

 

[investorpaul]

Looks like a few shorts going onto the banks today, probably long on commodities also.

Wonder though if after a few days of shorts going on, if we will get a short squeeze so some of the bigger guys can get better fills?

Should be good to watch and I hope so, so I can get some on myself at a bit higher prices.

I have shorted WBC today and have an order in to short sell ANZ if it goes below $15.

 

[skc]

I suppose the A REIT sector is also shortable. Now who hasn't done their n'th round of capital raising?

MGR?
WDC?

 

[white_goodman]

I have shorted WBC today and have an order in to short sell ANZ if it goes below $15.

$15 i agree is key level. long if it resists however....

 

[MichaelD]

Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.

 

[MRC & Co]

Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.

On what basis do you make that hypothesis?

 

[skyQuake]

Agree, remember what happened last time? Mother of all rallies out of nowhere.

 

[beerwm]

ahh, so the ban has been lifted.

does this mean we're in a bull market now

 

[Garpal Gumnut]

ahh, so the ban has been lifted.

does this mean we're in a bull market now

Unfortunately not if you hold financials. MQG has lost significantly today and if I were trading at present I'd be inclined to short it.

It is an extremely volatile time for financial stocks.

It would be good to see them consolidate and move sideways for a few months, but i do not think this will happen.

gg

 

[sleepy]

Does anyone have the list of all the financial stocks that were banned ... or can provide a link .... as I'm after all the symbols it applied to.

sleepy

 

[Garpal Gumnut]

Does anyone have the list of all the financial stocks that were banned ... or can provide a link .... as I'm after all the symbols it applied to.

sleepy

Its all the banks and some others, insurnace etc.

It should be on the asx site.

Google "ban short selling financials asx" on google.com.au and you should get the result.

gg

 

[sleepy]

I couldnt find the the list via google or ASX after 40+ mins of searching ... thats why I was asking here.

sleepy

... until now that is .. thanks!

 

[MichaelD]

On what basis do you make that hypothesis?

On the basis that I feel contrarian today and my elbow is itchy and the wind changed direction.

 

[Aussiejeff]

Of course, ASIC have stated they WILL re-instate an instant ban at anytime they feel market activity *justifies* such action. Ahhh, the Sword of Damocles rule, eh?



Caveat venditor...

 

[nomore4s]

Can't help but think that the only ones shorting will be retail traders. Will be interesting to see what eventuates, but I don't feel being short financials is where the smart money will be at the moment.

Agree, remember what happened last time? Mother of all rallies out of nowhere.

lol, I can't help thinking the smart money will let the retail investors load up on shorts and then short squeeze them for a profitable covering rally.