German short selling ban

[jojackson]

Might be a stupid question, but does anyone know if this includes futures? And which futures it includes ie Bund, Bobl, Schatz, Euribor...

 

[pssonice]

it is "a stupid question"

bancs are the target of this ban.
the selloff in european financials is near.

 

[jojackson]

Ok, let's talk about stupid - at least I know how to spell banks.

Also, the ban is on european government bonds as well as the financials.

Anyone apart from this genius got anything else?

 

[dealer911]

Re: it is "a stupid question"

bancs are the target of this ban.
the selloff in european financials is near.

The banks are not the target of the ban - it is the Government bond markets that are the target -Short sellers blamed for driving Greece into trouble by driving up the cost of refinancing their loans - The ban on the stocks is just icing on cake!- as far as I know it is all euro denominated bonds and related derivatives which will include the list given by JJ but I guess it will all be confirmed tomorrow.. really dumb idea if you ask me.

 

[Zulu89]

so, if i understand right, should we rally straight from the open tomorrow because selling isnt allowed?

 

[Rhody Trader]

This is a naked short ban - meaning you cannot sell something you do not already possess (such as borrowed shares). It does not apply to futures/options, because those are contracts for future exchange.

 

[pboyles]

..and nothing out of the ordinary seems to be happening on the Bund or Eurostoxx this morning despite the predictions of chaos.

 

[pssonice]

db in EURUSD, something ordinary

!

 

[dealer911]

..and nothing out of the ordinary seems to be happening on the Bund or Eurostoxx this morning despite the predictions of chaos.

I guess eurostoxx down 4% is normal these days!

 

[arabianights]

I wonder if the roll will be interesting...

 

[arabianights]

The other thing I would say is if the bund does start collapsing one day there isn't going to be anyone there to stop it...

Might be worth getting some lotto puts

 

[Trader333]

so, if i understand right, should we rally straight from the open tomorrow because selling isnt allowed?

Not at all because it is a myth that Short Selling causes markets to fall. Markets fall because of a lack of Buying Support. As such banning Short Selling does not make more people buy and if anything it will cause less people to want to trade in it causing it to fall faster in my view.


Paul

 

[D70]

Not at all because it is a myth that Short Selling causes markets to fall. Markets fall because of a lack of Buying Support. As such banning Short Selling does not make more people buy and if anything it will cause less people to want to trade in it causing it to fall faster in my view.


Paul

Agree with Trader333.
The action of banning short selling normally just removes liquidity.
Maybe politicians should stick to what they know......... blowing hot air?

 

[round turn]

It seems that all the brilliant ideas that we’ve had from Europe recently are intended to halt the evil speculators / support the market. I mean, how is one now supposed to position yourself for deteriorating conditions in Europe? Sell front month Euribor? No, the ECB are providing unlimited funding. Sell the regional bonds? No, the ECB are on the other side of that too. Sell some bank stocks? Not if the BaFin has its way. OK well maybe I’ll just sell the Euro then? Uh oh, what’s that? Rumours of intervention anyone?


I’ve heard a lot of talk in the last few days about the deteriorating situation in Europe. It has (among other things) been blamed for the recent stock sell-off, and therefore the 10yr bond rally. But how can you tell things are still getting worse? If the Central Banks are on the other side of all the above trades, what indicators are there to measure how good or bad things are?

I’m not being facetious by the way, I need HELP!

 

[Adamus]

I’m not being facetious by the way, I need HELP!

A heart-felt plea from an honest speculator if ever I saw one!