2 of the operational result current EUR 5Chrysler and Fiat have developed a partnership which has a strong chance of successHe will soon hold 30 of the voting rightsPassengers who sail to Corsica are lovers of nature68 million to various venture capital fundThere is a pole bio health but he limpingwithout that laidoff employees are compensatedA thrill that begins to resemble a renaissanceHome does not hesitate to revisit its heritageAnd for now society is still subscribed to the lean regimeThe prohibition of short selling on financial values determined "to hot" more than the crisis of autumn was an ineffective decision and who even had negative effects important and contrary to the desired effects, reveals a study of the Edhec (). Conclusions in line with the other work on these issues.
Thus, the volatility of securities which have been increased after this prohibition. It is difficult to quantify the effect of it on the increase in the risk of the actions of the financial sector. Was however observed that their courses were much more distant their fundamental value after this prohibition and less representative of all the information available in the market. And for cause, part of players, vendors in the open, were no longer able to intervene and "express". The volatility of the market as a whole has also progressed. It is this time the sign that the decision of the authorities hardly brought calm and has even led to confusion and misunderstanding about the awards, disrupting some of their operations. A change in the rules of the game sources of additional uncertainties, and that no doubt had an impact on the volatility still more important than that of the crisis itself.
Loss of credibility
"Finally, the effects wanted on market trends have not been met and he did y no evidence that this prohibition has had an impact on their extreme movements, high amplitude, see Abraham Lioui, Professor of finance at the Edhec Risk and Asset Management Research Centre and author of the study.". What is certain, however, is that stock indexes, which are today subject to different rules actions, have become less representative and relevant for investors. "He intervene to influence the movements of the market is not within the prerogatives of the regulators. Doing so would expose in addition to a loss of credibility very damaging failure or error. Indeed, the short sale is or another a privileged instrument to manipulate securities. For a simple reason, many of those who use it seek to cover and protect themselves, not to speculate. This is the case of market-makers (the operators committed to buy and sell products at some cost) operating options. Thus, for example, when selling options for sale on a title, they sell simultaneously to discovered these titles to cover themselves in the event of fall of the prices. And also these levels of market were generally exempt from this prohibition.
Performance low long-term
As short sellers for reasons of speculation, the weakness of their long-term performance shows that it is not, far from it, of a martingale that they would make money consistently over other investors or companies.
This prohibition was a bad idea at the worst time, made during a period of great vulnerability of markets. The sign that regulators have deviated from their missions and intrusion in a domain that is not really within their jurisdiction. In France, the exceptional measures, decided on September 19, 2008, have been extended. A working group has made its report in February and the public consultation on the issue was closed on 10 April. The principle of a final ban seems unrealistic and desirable. On the other hand, a better supervision and greater transparency of these practices are more feasible.
