This kind of vague sort of quote is really maddening. Specifically, Bloomberg reports:
U.S. regulators are likely to extend a ban on short-sales of financial stocks and is considering new protections for all publicly traded companies, NYSE Euronext Chief Executive Officer Duncan Niederauer said. (Emphasis ours).
What might those look like?
The SEC is considering rules that would bar traders from shorting stocks if they drop more than a certain percent, Niederauer said. Other proposals include halting trading in stocks that drop more than a certain threshold, or reviving the so-called uptick rule, which allowed short sales only if a preceding trade boosted a company’s stock price, he said.
Next: Expensive and beautiful silk panty garments – for everyone! (Why not? It’s just as ineffective and does less damage).
SEC May Extend Short-Selling Ban on Financial Stocks [Bloomberg]
How about we just have one random short seller taken out and shot every week? Now THAT is a disincentive to short for manipulation purposes.
We’ll even limit it to sellers who are in the money more than any relevant related trades are out to keep market makers mostly safe, how’s about that? Hmmm? Deal?
Bailout bill will give billions to China!
http://globaleconomicanalysis.blogspot.com/2008/10/rep-brad-sherman-on-bailing-out-foreign.html
Problem with shorting and naked shorting in particular is that it becomes a self fulfilling prophecy, like a self propagating loop.
Can we jsut fire Chris Cox already.
What fucking genius made these stupid suggestions:
The SEC is considering rules that would bar traders from shorting stocks if they drop more than a certain percent, Niederauer said. Other proposals include halting trading in stocks that drop more than a certain threshold.
I love the last one – halt the stock because it has fallen to much, wait half an hour for real fundamental panic set in, open it up again to fundamental sellers, watch it fall another 20% and then the shorts get to come in and cover.
Hasn’t it been well established that the short sellers were NOT the problem with finanical instituions OR the general market.
Perhaps the SEC should try and actually i don’t know – DO ITS JOB. Perhaps Chris Cox should work on coming up with a way to regulate the real bogeyman – the CDS market. Of course that implies that Chris Cox has any fucking idea what a CDS is…….
“You guys all thought you had way more money than you did, so we’re going to make it illegal for people to disagree with you about how much money you have! That’ll teach ya!”
Why don’t they pass a down tick rule for buyers, you know so crappy stocks don’t get to 40x revenue.
@5
I’ll tell you exactly who came up with these genius plans – Niederauer’s constituents. Otherwise known as market makers and specialists. Or, as we call them, the Den of Thieves. They’ve been pissed off ever since the uptick rule went away because it allowed customers to compete with them directly. Since most of them are dumbass Vinnies who have a hard time tying their shoes in the morning – let alone make a market and hedge their book without losing all their edge – their profits have been eroded by the lack of economic rents the Ministry of Price control used to throw their way.
These are their thinly veiled suggestions to help the market by going back to fucking the customer so untalented dimwits can make money once again.
@8 but it made the sell-side days much easier, no more counting prints to see if an account was “due a report”, all that was needed was the “im’ BORROW GS(unless limited).
Yes, broaden the ban on short-selling, since it worked so brilliantly on Monday.
answer: no
question: could the sec be a bigger embarrassment in the way that they are proceeding to vaporize the liquidity in the markets and destroy their integrity?