GroceryWatch, FuelWatch, and now we have StockWatch
On Friday Rudd said that Australia wouldn’t be changing short selling laws. He must have changed his mind as he was waiting while they were fueling up the Boeing business jet on his way to NYC. This weekend ASIC banned all forms of short selling promising to review the ban in 30 days. Rudd must have looked to Russia for inspiration as they are the only market that have imposed a complete ban.
This has caused outright confusion in the market. Funds that carry out sector trading for instance will have to close their positions. These are funds that strategize long/short positions between various industry sectors to extract relative value.
Amusingly offshore funds that are not regulated by ASIC can still short the market and will simply pay the equivalent of a parking fine.
Outright confusion breeds well errr, outright confusion. Market makers remain unsure if they are allowed to provide liquidity to clients by facilitating trades which necessitate he creation of a short positions at times.
Furthermore Rudd has now placed the Australian market in focus by suggesting we have something to hide with such draconian measures which may not be the best thing to do in skittery markets.
Good one guys.
Under Rudd we now have Stockswatch seeing bear marlkets are now illegal. I wonder if he’s going to run a website with a basket of sector stocks. LOL
Anyone suggesting Rudd and Swan are comparable to Howard and Costello as far as finance goes…. ” there’s little light between the big parties” needs a brain MRI