Luis Iturbe | There are no investigations for insider trading, not even when it is known that (the Banco Popular case) the shorts have made a real break, moreover adding to the crisis of liquidity. Despite these facts being known, the issue has been forgotten.
Chandra Roy | In this tenth anniversary of the financial market crisis, market regulators can clearly be seen to support the short-sell strategy of securities, rather than outlaw it. The practice is likely to gather further momentum as it is widely expected that at some point, new legislation will allow insurance companies and other final users to participate in the pool of securities on offer; currently, borrowers must source their needs from depositories and other trading houses via bespoke agreements.
Some investors sell shares that they don’t actually hold but borrow under the expectation that prices will fall. If they are right, when they buy back, the stock comes at a cheaper cost than the amount they were paid for those same shares and so sellers can pocket the difference as a profit. A day after the Spanish financial regulator CNMV ruled a full suppression of these short selling practices over…
MADRID | Equity trading in Bolsas y Mercados Españoles BME dropped by 25% year on year in March. Total equity volume traded reached €176.935 billion during the first quarter of 2012, which represents a 28.5% fall, too. But analysts at Bankia Bolsa say we should put things in context before letting ourselves go with the flow of hopelessness that has lately surrounded everything economic and Spanish. Where is the key…
By Julia Pastor, in Madrid | The Spanish stock market fell Thursday by 2%, specially because of the severe punishment suffered by its listed banks. On Friday, analysts at Link Securities commented that “as good news came from Greece, European financial shares were regaining ground but Spanish banks behaved differently… we see that the only reason that explain this fact is the end of the short- selling veto.” After France and…