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ASX not fazed by extreme shorting

Discussion in 'Shares' started by Billv, 21st Jul, 2008.

  1. Billv

    Billv Getting there

    Joined:
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    NAKED short selling is not a major problem in Australia, according to the Australian Stock Exchange.

    The ASX said it already limits the number of stocks that can be naked short sold in a bid to curb market manipulation.

    This comes as regulators in the US move to curtail naked short selling on 19 of the most liquid and easy to trade financial stocks, to prevent the kind of runs that toppled Bear Stearns in March.

    Naked shorting is the practice of selling a stock short without first borrowing the shares or ensuring that the shares can be borrowed.

    Manipulative traders can use naked short selling to flood the market with sell orders on shares they don't have.

    more here
    ASX not fazed by extreme shorting | Herald Sun