FSA to end financial shorting ban on Jan 16

Britain’s Financial Services Authority said on Monday that its ban on short-selling financial stocks would expire on Jan. 16, but that it would reintroduce the ban without consultation if needed.

The FSA also said it would extend rules requiring net short positions in financial stocks to be disclosed until June 30, although disclosure will only be required at 0.1 percent bands.

Thoughts: It is good to see the Financial Services Authority (FSA) has finally come to its senses and decided not to extend the shorting ban on financial stocks. The US regulator has also admitted that a similar ban it implemented in the United States was a failure but I don’t suppose the FSA will ever admit it made a mistake.

Tags: Financial Services Authority, FSA, shorting ban

This entry was posted on Friday, January 9th, 2009 at 11:12 pm and is filed under Industry Happenings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.