Member Poll on Short Selling

 

Global regulators acted to suspend short selling on certain equity sectors and markets in response to the market crisis in October 2008. In response, the CFA Institute Centre for Financial Market Integrity conducted a poll of its members in May 2009, and the feedback will be used in a comment letter to the SEC.

 

Short selling benefits the market by providing price discovery and market liquidity.

 

 

The 2007 repeal of the so-called “uptick rule” in U.S. markets as the main check and balance on short selling contributed to market volatility in the shares of financial service firms. 

Under which conditions, if any, should naked short selling be allowed?

 

The U.S. SEC is proposing several variations on rules to create an appropriate limit on short selling in distressed markets. Please rank these options below from 1 to 5, with one (1) being your most preferred option to five (5) being your least preferred option. 

 

 

Read the full results (PDF)