Discussion in 'Stocks' started by millionaire7, Sep 22, 2008.
Can we short the Single Stock Futures for the stocks that are banned for shorting.
Yes. You may short SSF's.
As further clarification regarding the SECâs Emergency Order restricting short sales, please note that there are no restrictions on trading SSFs on OneChicago and that members may buy and sell in the ordinary course throughout the SECâs order that expires on October 2, 2008, unless further extended. If you have any questions please contact OneChicagoâs General Counsel Donald Horwitz, email@example.com or 312-424-8519.
no, the SEC updated it's rules, you can't short single stock futures
Here some additional infos (issued by IB!)
The SEC has imposed emergency rules for short sale and economically similar dealing in approximately 800 financial services companies. Part of the new rules impact options trading strategies that can lead to a short sale, even if temporarily. The following limitations on option trading have been put in place to conform to the SEC regulations. Additional information, and updates to the SEC rules as they become available, can be found on: http://www.interactivebrokers.com/en/trading/shortableStocks.php.
(A1) purchase of call options and exercise of long call positions
(A2) sale of call options against an existing long stock position in a ratio less than or equal to 1 call per 100 shares
(A3) purchase and sale of put options
(A4) purchase of single stock futures
(NA1) exercise of puts that would lead to a short stock position
(NA2) selling uncovered calls or uncovered single stock futures (coverage via stock)
(NA3) selling long stock if so doing will expose an uncovered short call position
Whoops. I was incorrect. You cannot short SSF's (which is complete BS).
The new SEC restrictions are somewhat fluid and have created a great deal of confusion. We have been in contact with the SEC and have received clarification on whether the trading of SSF are in fact affected.
Please be aware that the trading of SSF by customers whether buying or selling IS allowed.
I am aware that certain firms have released bullitens which are contradictory but you should see updates very soon.
We are in the process of listing additional names that appear on the restricted list and will keep everyone updated to our progress.
Just wait until the SEC decides shorts that pre-date their new rule must cover.
Then following that all brokerage account holders will be required to buy bank stocks but nobody will be allowed to sell them (naked buying).
Where does this BS end?
I thought the SEC has no authority over the derivatives markets? How can they ban shorting on SSFs? or any other type of futures contract?
Security Futures traded on OneChicago are considered both a security and a future. OneChicago is regulated by both the CFTC and the SEC. Both have significant regulatory oversight of our operations.
I will say that in a extraordinary situation the SEC and the CFTC has been very approachable, receptive and helpful.
Thanks for the update.
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