The Intended and Collateral Effects of Short-Sale Bans as a Regulatory Tool
The Journal of Investment Management, Third Quarter, 2013
18 Pages Posted: 10 Oct 2012 Last revised: 19 Sep 2013
There are 2 versions of this paper
The Intended and Collateral Effects of Short-Sale Bans as a Regulatory Tool
The Intended and Collateral Effects of Short-Sale Bans as a Regulatory Tool
Date Written: October 10, 2011
Abstract
Short-sale bans have been frequently utilized globally as a regulatory tool during periods of financial crisis. This paper is a review of the observed intended and unintended effects. We see that short-sale bans have pervasive effects spanning many financial markets that include options, convertible bonds, CDS, and ETFs. Such implications should be of interest to regulators and policymakers when contemplating future bans.
Keywords: short-sale ban, SEC, securities and exchange commission, short-sale constraints, financial crisis, price discovery, liquidity
JEL Classification: G12, G14, G18, G28
Suggested Citation: Suggested Citation
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