Special update: Short selling restrictions

In recent weeks we have seen unprecedented events unfold in global financial markets. The seriousness of events has prompted US authorities and market regulators in several major economies to impose restrictions on short selling in an effort to reduce volatility and stabilise markets. In Australia, ASIC has imposed a prohibition on short selling for one month from 22 September 2008. The rules vary within different jurisdictions – in the US the ban only refers to financial stocks until October 2nd.

BTIM Perspective

Views on the investment markets by Dirk Morris, CEO, CIO BT Investment Management.
The past few weeks have seen a second wave from the US sub-prime credit crunch impact global financial markets with almost unprecedented volatility and in a way that has shocked investment markets to their core. This latest wave is primarily a crisis of confidence as financial market participants refuse to extend credit to each other after the Federal Reserve signalled its unwillingness to "bail-out" any more investment banks (after being forced to take on the debts of the two big US government lenders Fannie Mae and Freddie Mac).