Financial Times FT.com

Ban on shorting banks failed miserably, say experts

By James Mackintosh in London, Tom Mitchell in Hong Kong and Elizabeth Fry in Sydney

Published: March 10 2009 22:48 | Last updated: March 10 2009 23:28

The US Securities and Exchange Commission will next month consider whether to propose reinstating a market rule designed to prevent “bear attacks” on stocks from speculative traders.

The so-called “uptick:” rule, scrapped in 2007, allowed short selling – where traders profit from price falls – only when the last tick in a stock’s price was positive. There are now growing calls to bring the rule back amid continuing turmoil in the stock markets.

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