How the Australian Ban on Short Selling During the GFC Affected Market Quality and Volatility
Thomas Henker, Julia Henker, Uwe Helmes
2012 Financial Markets & Corporate Governance Conference, 30 August 2011
We examine the effects of the short selling ban, imposed by Australian regulators in the wake of the global financial crisis, on trading of financial stocks. Unlike other developed markets, where regulators imposed short-selling restrictions for brief periods of time at the height of the financial crisis, the ban on short selling of financial stocks on the Australian Stock Exchange lasted eight months, including both the tumultuous end of 2008 and the calmer period up to May 2009.
PDF (55 pages): How the Australian Ban on Short Selling During the GFC Affected Market Quality and Volatility
