AFME response to extension of short selling bans by Italy, France, Spain and Belgium

26 August 2011

Sander Schol, a director of AFME, said that it was unclear whether the recent bans have had the desired effect on stabilising the markets and restoring investor confidence.

In response to the extension of short selling bans by Italy, France, Spain and Belgium, announced on 25 August 2011, Sander Schol, a director at the Association for Financial Markets in Europe (AFME) said: “It is unclear whether the recent bans have had the desired effect on stabilising the markets and restoring investor confidence. Indeed, users of the capital markets, including governments, corporates, pension funds and retail investors, all value the many benefits that short selling brings to the financial markets, such as improved liquidity, lower dealing costs, better price formation and risk management. It is essential for market making and widely accepted by investors and regulators alike.”

Press release

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