Short selling banned for one month on Euronext Brussels and Euronext Growth

Discussion in 'Economics' started by p0box4, Mar 17, 2020.

  1. p0box4

    p0box4

    After a temporary ban on short selling on selected products on Tuesday:

    https://www.cnbc.com/2020/03/17/sho...n-hope-of-stemming-stock-market-bleeding.html

    The FSMA (financial regulator in Belgium) has now announced a short selling ban for one month on Euronext Brussels and Euronext Growth (unable to find an article in English but feel free to use Google Translate):

    https://www.tijd.be/markten-live/nieuws/algemeen/shorten-maand-lang-verboden-op-euronext-brussel/10215143.html

    According to the article the stock exchange in Madrid took similar action and financial regulators in France are considering similar actions.

    The BEL20, the Belgian stock index is down around 40% from its all time high earlier this year and recently had its worst day in its 30 years of existence.
     
  2. Cuddles

    Cuddles

    I don't even know if this will cause a buying frenzy or absolute volume collapse.
     
    p0box4 likes this.
  3. clacy

    clacy

    Yeah you still need a bid to dump your stock. If short sellers aren’t driving it down orderly, it will still get to where it needs to be, but in a more choppy fashion
     
  4. poopy theory

    how about real longs get to sell at better prices, and stocks dont tank as much
     
  5. Cuddles

    Cuddles

    why would anyone overpay for anything knowing the true value is not what it's advertised at?
     
  6. you're over your head

    who are the shorts selling to then ?

    we are talking like adults here, right ? not internet goofy poopy peeps
     
  7. Cuddles

    Cuddles

    Supply and Demand poopy. If more buyers than sellers, demand is high, ergo better prices. If more sellers than buyers, demand is low, ergo lower prices. If you "ban" shorting, the demand is slanted towards the longs....as only sale of owned shares would be allowed. This means you'd end up w/an illiquid market where the demand to short an asset is not met by the available shares to sell, artificially inflating the price.

    Again, who wants to own an inflated asset not representative of its true value? If shorting had not been around since forever, this would be fine, but you're taking away a system that has kept the price of the asset in check for years.
     
  8. 16,800 posts by a pinhead?

    When stocks are dropping fast , very little actual purpose is served by short sellers
    All they are doing is frontrunning actual sellers. Then covering at even lower prices.

    You're an embarrassment to ET

    "but you're taking away a system that has kept the price of the asset in check for years."

    lol, short selling has not prevented any bubbles . If anything it makes them worse

    I shouldnt even be wising you up , but you're clearly harmless and dont trade
     
  9. schizo

    schizo

    This is off-topic, but can you get rid of that fathead avatar? Geezus, looking at that fat kid makes my stomach churn.
     
  10. Cuddles

    Cuddles

    I take pride in my troll count, I don't go on creating multiple nicks
     
    #10     Mar 18, 2020