Rule changes have forced firms – including DE Shaw – to stop trading some equities and credit default swaps
Liquidity drained from the sovereign CDS market before the ban took hold this morning – and market-makers are still unsure what they can and cannot do
UBS Securities has been fined $8 million by the SEC for inaccurately recording 'locates' information
This white paper looks at the heavy impact of regulation on investment managers, the mitigation of outsourcing risk, inefficiencies in corporate actions processing and the growing importance of collateral management.
More Short-selling articles
A recipe for disaster?
Fine from Finra is latest indicator of UBS's control and supervisory issues
The new rules are "another instance of the authorities blaming the wrong people and imposing the wrong policies", says Cass's Ian Marsh
Dealers say volumes have been light as market participants try to work out scope of bans – with confusion arising on index trades and the geographic reach of the rules
Regulators need to protect markets from "rumours and false information" say bans' supporters
Sovereign debt managers criticise ban on naked credit default swaps
Ban could harm government debt markets, according to UK DMO – dealers say any prohibition would backfire
Murky on transparency
Confusion, then clarity
Deutsche Bank has listed short-bond ETFs on the London Stock Exchange as an interest rate hedge or for taking directional views on UK and US sovereign debt
Shorting shares and bonds could be restricted or even banned under new EC proposals, but naked credit default swaps are safe for now.
Under pressure from member states, the EC expects to adopt new short-selling rules by September.
This whitepaper reviews the fundamental changes of Liquidity Risk Management under Basel III. It discusses how institutions can meet the regulatory requirements on liquidity risk management by enhancing their liquidity risk analytics, funds transfer pricing methodologies, liquidity stress testing frameworks, and enterprise risk management platforms.