Short Sales Bans in Response to the COVID-19 Pandemic
Barnabas Reynolds, Thomas Donegan, Russell Sacks
Shearman & Sterling, 1 April 2020
In the wake of the COVID-19 pandemic, numerous European jurisdictions, including France, Italy, Spain, Greece and Belgium have enacted short sale bans in an attempt to stabilize financial markets and maintain investor confidence. The following note provides an overview of these bans as well as an overview of the 2008 partial ban(s) on short selling by the U.S. in response to the financial crisis. To date, the United States has not yet indicated that it is considering a ban on short selling in response to market volatility due to the COVID-19 pandemic.
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Morgan Stanley Fined $22 Million for Rigging Bond Markets
Gaspard Sebag, Stephanie Bodoni
Bloomberg, 10 December 2019
Morgan Stanley was fined 20 million euros ($22.1 million) by French regulators after the bank’s London desk was accused of using “pump and dump” tactics to manipulate sovereign bond prices.
The Autorite des Marches Financier’s enforcement committee said that the bank manipulated the prices of 14 French government bonds and 8 Belgian bonds in June 2015. The lender also manipulated the price of a French government bond futures contract, the AMF said in a statement Tuesday.
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