ASIC Lifts Ban On Covered Short Selling Of Financial Stocks

Shorting ban on Financials lifted – Can short as of today

The Australian Securities and Investments Commission said Monday it will lift its ban on covered short selling of financial stocks from 0000 GMT Monday.  

“ASIC has reviewed market conditions and considers that the balance between market efficiency and potential systemic concern has now moved in favor of the ban being lifted,” the regulator said in a statement.

  “In reaching this view, however, ASIC notes that the global financial crisis and global recession continues to place pressure on Australia’s markets,” it said.

  “ASIC will not hesitate to reimpose the ban immediately and without consultation if it considers market conditions warrant such action,” the regulator said.

  It will pay particular attention to short selling activity by market participants, including hedge funds, which could potentially harm Australia’s financial system.

  The ban was put in place on Sept. 21, 2008, in the wake of the collapse of U.S. investment bank Lehman Brothers.

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