The effects of short-selling public disclosure regimes on equity markets (Oliver Wyman, MFA)

2010

KEYWORDS: Short Selling, Equity markets

Authors:

Bradley P. Ziff, Thayer Moeller

Organizations:
  • Oliver Wyman, MFA

Summary:

The Report examines the effects of manager-level public short-selling disclosure requirements on the equity markets they impact. We hypothesize that the public nature of such requirements, depending on the thresholds and frequencies of the disclosure requirement, would negatively impact equity investors’ inclination to engage in short-selling. We further posit that such a withdrawal of liquidity would have detrimental impacts on equity markets.

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