Shorts changed

Short selling

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Equity traders met with a shock when they arrived at their desks on Friday, September 19. Having outlawed naked short selling two days before, the US Securities and Exchange Commission (SEC) decided to temporarily ban short selling altogether on a long list of financial institutions, effective immediately. The announcement, at first glance, appeared similar to a ban introduced by the UK Financial Services Authority (FSA) the day before (see box). However, flicking through the details of the SEC

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