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Emergency Short Selling Restrictions in the Course of the Financial Crisis

18 Pages Posted: 1 Aug 2009 Last revised: 23 Jun 2010

Seraina N. Gruenewald

University of Zurich - Rechtswissenschaftliches Institut (School of Law)

Alexander F. Wagner

University of Zurich - Department of Banking and Finance; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI); Swiss Finance Institute

Rolf H. Weber

University of Zurich - Faculty of Law

Date Written: June 22, 2010

Abstract

This paper summarizes the short selling restrictions adopted - mainly on an emergency basis - in the time period of July 2008 up to mid-June 2010 in 56 countries around the world. It is a supplement to a recent article of the authors (Gruenewald et al., 2010) and gives a detailed overview of the regulators’ short-term measures ranging from complete short selling bans to extra disclosure obligations for short sellers. The overview includes the measures’ time frame, type and exceptions as well as information on the targeted firms. Although not all countries have implemented short selling restrictions, their impact is massive: Approximately 80% of the December 2008 stock market capitalizations of the countries in our sample were directly or indirectly affected by some emergency short selling restriction.

Keywords: short selling, regulation, market abuse, market efficiency, financial crisis

JEL Classification: G01, G28

Suggested Citation

Gruenewald, Seraina N. and Wagner, Alexander F. and Weber, Rolf H., Emergency Short Selling Restrictions in the Course of the Financial Crisis (June 22, 2010). Available at SSRN: https://ssrn.com/abstract=1441236 or http://dx.doi.org/10.2139/ssrn.1441236

Seraina Neva Gruenewald

University of Zurich - Rechtswissenschaftliches Institut (School of Law) ( email )

Raemistrasse 74/38
CH-8001 Zurich
Switzerland

Alexander F. Wagner (Contact Author)

University of Zurich - Department of Banking and Finance ( email )

Plattenstrasse 14
Zürich, 8032
Switzerland
+41 44 634 3963 (Phone)

Centre for Economic Policy Research (CEPR) ( email )

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Swiss Finance Institute ( email )

Switzerland

HOME PAGE: http://www.alex-wagner.com

Rolf H. Weber

University of Zurich - Faculty of Law ( email )

Universität Zürich
Rämistrasse 74 / 57
Zürich, CH-8001
Switzerland

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