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sjcon
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Joined: May 31st, 2007, 8:09 am

Disclosing shorts

September 18th, 2008, 7:34 am

http://www.bloomberg.com/apps/news?pid= ... r=homethis is interesting as previously longs of 5%+ had to be disclosed but never shorts of any size.
 
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rmax
Posts: 374
Joined: December 8th, 2005, 9:31 am

Disclosing shorts

September 18th, 2008, 11:04 am

The problem I see with this is that Longs are disclosed for pretty obvious reasons - i.e. potential take-over. Shorts don't operate in the same way. My concern is that they want to fix something they don't understand and can't predict the outcome.Might be better to stop the rating agencies threatening to downgrade based on share price. If they don't it is a very easy trade: borrow vs short until liqudity dries up.
 
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jjyu
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Joined: September 28th, 2005, 12:34 pm

Disclosing shorts

September 18th, 2008, 11:31 am

QuoteMight be better to stop the rating agencies threatening to downgrade based on share price. While the rating agencies share responsibilities for the credit market problem before it became apparent, and now the timing of downgrade are indeed questionable,preventing them from issuing the downgrades would not help. You know a lot of people are still relying on their work (until we find a better alternative).It is a very complex situation, I guess we have to ride this out. I dont think if anybody, FED, treasury, and the smartest people alike, knows how to fix the current problemexcept trial and error.I dont know if it is the right thing to disclose the shorts. What is the downside? Would it promote better transparency?
 
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ppauper
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Joined: November 15th, 2001, 1:29 pm

Disclosing shorts

September 18th, 2008, 12:58 pm

it should be illegal
 
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psholtz
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Joined: May 5th, 2007, 4:07 am

Disclosing shorts

September 18th, 2008, 5:41 pm

QuoteOriginally posted by: jjyuI dont know if it is the right thing to disclose the shorts. What is the downside? Would it promote better transparency?Disclosing shorts would help expose the rampant naked shorting that's going on.
 
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jjyu
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Joined: September 28th, 2005, 12:34 pm

Disclosing shorts

September 18th, 2008, 7:24 pm

QuoteOriginally posted by: psholtzQuoteOriginally posted by: jjyuI dont know if it is the right thing to disclose the shorts. What is the downside? Would it promote better transparency?Disclosing shorts would help expose the rampant naked shorting that's going on.That is obvious. But why no attempt was made to put this in until now? Is there something we missed? I mean, what's the downside?Can this be effective? Disclosure doesn't mean "illegeal". What's the followup after knowing who held short positions?