British Short Ban To End Jan. 16

Jan 6 2009 | 3:22am ET

Months after similar restrictions in the U.S. lapsed, the British ban on short-selling financial stocks will come to an end later this month.

The U.K. Financial Services Authority rejected calls to extend the temporary restrictions, saying it will allow them to expire on Jan. 16. The regulator warned that it was extended disclosure requirements on significant short positions until June 30, and that it would reimpose a ban on short sales if such a move became necessary.

The FSA instituted the ban in September in an effort to prop up financial firms. Similar moves were made by financial regulators around the world, including the U.S., which expired in October, less than a month after their implementation. The British prime minister, Gordon Brown, had at times intimated that the ban might be made permanent.

The shorting ban hit many hedge funds hard, and hedge fund managers and lobbyists have been extremely vocal in calling for the ban to end. In October, the Alternative Investment Management Association sought an early end to the restrictions, noting that financial stocks continued to lose ground despite the bar on shorting.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat