News.com.au – An independent monitor of local hedge funds has rubbished claims domestic financial stocks would be targerted if the ban on short selling was lifted.
Australian Fund Monitors’ chief executive Chris Gosselin hosed down concerns expressed by the Australian Securities and Investments Commission (ASIC) to extend the short selling ban on financial stocks for a third time until May 31.
The risk of damage from aggressive or predatory practices from short selling justified any loss of market efficiency or price discovery caused by extending the ban, ASIC said last Thursday.
