Brexit and Short-Selling Disclosures
16 Pages Posted: 13 Jul 2016
Date Written: July 12, 2016
The unexpected result of the referendum on the Brexit was followed by the highest number of disclosures of short-selling positions since the enforcement of the European short-selling disclosure regime in the UK. This paper analyzes the disclosures of short positions which took place around the Brexit and shows the distribution and magnitude of reported short positions per sector. From the data, it emerges that among short-sellers the Brexit outcome was not expected, and that the sectors where the short-sellers expected the biggest losses following the Brexit are the sectors that are severely affected by the loss of value of the British Pound, namely the travel, construction, food, and retail sector.
Keywords: Brexit, referendum, short-selling, short-sale disclosures
JEL Classification: G12, G18
Suggested Citation: Suggested Citation