FSA prohibits short-selling until January

Net short positions on financial stocks have been banned until January by the FSA. The regulator i...

Net short positions on financial stocks have been banned until January by the FSA. The regulator introduced provisions to the Code of Market Conduct which prohibited the creation or increase of shorts from midnight last night in an attempt to curb further volatility in the sector. Hector Sants, chief executive of the FSA said whilst he regards short-selling as a legitimate investment technique in normal market conditions, the extreme conditions in the market have caused disorderly markets. Therefore they have introduced the prohibitive measure to protect the integrity and quality of the ...