Short-sellers and their targets get a warning - Reuters

siantarkalo.blogspot.com

An investor is reflected in a window in front of a board displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia May 5, 2017. REUTERS/Steven Saphore

Aggressive short-sellers are being urged to restrain themselves Down Under. The Australian Securities and Investments Commission on Tuesday issued guidelines for what it considers best practices. They include releasing reports outside trading hours, disclosing conflicts of interest and avoiding “overly emotive, intemperate or imprecise language.”

Many of the recommendations seem reasonable, and it’s encouraging that the regulator acknowledges the price-discovery benefits the most bearish investors bring. It’s not clear, though, whether stock bulls are required to be less effusive or similarly time their trading calls. At least Australia isn’t banning the practice as South Korea and others have.

ASIC seems to understand the art of the short. In addition to advising targeted companies to request a trading halt and respond promptly to attacks, it warns that activist campaigns tend to seek out “opaque corporate structures and accounting practices, or poor disclosure.” That perceptiveness doesn’t exactly square with another piece of guidance for short-sellers: to run their facts by their marks ahead of time. (By Jeffrey Goldfarb)

On Twitter http://twitter.com/breakingviews

Capital Calls - More concise insights on global finance:

Manila snackmaker’s flat IPO may find some fizz read more

Tata’s BigBasket deal bags top super-app item read more

Klarna $50 bln value beats richly priced rivals read more

Third Point activist flips script on Dan Loeb read more

German fashion IPO is surprisingly reasonable read more

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

Adblock test (Why?)

"Short" - Google News
June 01, 2021 at 03:13PM
https://ift.tt/3vE5sMM

Short-sellers and their targets get a warning - Reuters
"Short" - Google News
https://ift.tt/2QJPxcA


Bagikan Berita Ini