Saturday, 28 February 2015
Last updated 21 hours ago
Oct 6 2008 | 9:37am ET
The Securities and Exchange Commission’s ban on shorting financial stocks, much derided by the hedge fund community, will come to an end this week as promised.
The SEC said the ban will expire at 11:59 p.m. Wednesday, allowing short-selling to resume on Thursday. When the agency extended the two-week-old restrictions last Wednesday, it said they would be lifted three business days after Congress passed a Wall Street bailout package. The House of Representatives on Friday did just that, after rejecting a bailout bill earlier last week. President Bush quickly signed it.
The short-selling restrictions were put in place on Sept. 19, and grew to cover more than 1,000 financial stocks. The temporary ban, introduced alongside less temporary reporting requirements for short sales, is blamed in part for the historically difficult September suffered by many hedge funds.
Short sale bans remain in effect in other major markets, including the U.K. and the Netherlands.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…