Shorting in East European markets

pb273 · May 18th, 2004, 2:58 pm

Any idea whether shorting is allowed in these markets ?1. Russia2. Hungary3. Czech4. Poland5. Turkey6. Cyprus7. Slovenia8. SlovakiaThanks.

daveangel · May 18th, 2004, 3:24 pm

it msut be a bear market ... everyone wants to short everything!!

kenzo · May 20th, 2004, 12:31 pm

Only the most liquid stocks in Poland can be shorted, a list of them is published daily. The interest you pay is around 5%, the initial margin is 50% and the maintenance margin is 130%. You can deposit cash, bonds and stocks that verify as 'shortable', weighted by 1, .95 and .7 respectively.

Alexis · May 20th, 2004, 2:28 pm

On Prague Stock Exchange, it's possible only for the 7 most liquid stocks. The margin is 15% and your broker via whom you borrow the stock must have a special permission from the Securities Commission to provide this type of service. But not bad idea, the market just peaked ........... seems so

Gill · May 21st, 2004, 3:51 pm

It was not disallowed to short Russian and Turkish papers four years ago.Maybe legislation has been changed since then.... If it's not allowed these days you can make repo with both Russian and Turkish papers. So you can effectively short them.

hojdard · May 21st, 2004, 10:50 pm

why not going short by buying CDS protection? 1.-5. is quite liquid...but don't get over enthusiastic about shorting EM just because the last two weeks were miserable....

pb273 · May 24th, 2004, 10:04 am

QuoteOriginally posted by: hojdardwhy not going short by buying CDS protection? 1.-5. is quite liquid...but don't get over enthusiastic about shorting EM just because the last two weeks were miserable....No, I am just trying to back-test to see how well would an emerging/east european equity market-neutral strategy work in these markets: so if shorting is not allowed, there is no point in including these markets. Thanks anyway.

Sever · July 13th, 2004, 7:15 am

Just joined this forum and came across this topic:You can short in Russia if you broker lends you shares or you can short single equity futures on RTS Futures&Options Exchangewww.forts.ru