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Saturday, March 7, 2009

Longer stay for short-sales ban in Australia

The Australian Securities and Investment Commission (ASIC), Australia’s financial regulator, has further extended its short selling ban for financial stocks due to continued volatility.

The ban, originally due to end on Friday, will now be kept in place until 31 May, although ASIC has said this would be under constant review.

“In making its judgement to again extend the ban, ASIC weighed up the continued volatility in global financial markets and potential damage from aggressive or predatory practices from short selling against the possible loss of some market efficiency or price discovery,” read a statement on ASIC’s website.

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