Published

Joint Trades Letter on European Short Selling Bans

On May 13, MFA, AIMA, FIA, and WFE sent letters to Austrian, Belgian, French, Greek, Italian, and Spanish financial regulators advocating against the renewal of short selling bans in their jurisdictions. The letters draw on empirical evidence from this crisis to demonstrate the ineffectiveness of the short sale bans. On average, stocks “protected” by the bans have underperformed and markets as a whole in these countries have underperformed markets in countries that have not instituted short sale limitations (ie. Germany).

Click here for the letter to Austrian regulators

Click here for the letter to Belgian regulators

Click here for the letter to French regulators

Click here for the letter to Greek regulators

Click here for the letter to Italian regulators

Click here for the letter to Spanish regulators

Click here for WFE’s research on short selling

Click here for FIA’s research on short selling