Banning of Short Selling on Derivatives

hayman · Sep 19, 2008

Given today's bold and socialistic choice to ban shorting of 799 financial stocks, has anyone heard any news on the banning of short selling derivatives ?? Any talk of banning the short sale of futures such as ES or YM, which in theory encompasses the financial markets on a broader level ?

Should I be worried about the extinction of futures daytraders ???

sprstpd · Sep 19, 2008

I mean, who knows? These people are so retarded anything is possible. A line has been crossed here that is just plain embarrassing.

Buy gold, put on the tin foil hat, and hide in your bunker I say. Too many people on CNBC are just way too happy today - I am predicting pain soon.

hayman · Sep 19, 2008

Straying away from the topic of this thread, I am very concerned about the artificial bubble that the government is going to create with the financial equities. I hope that I'm wrong, but isn't this just going to make the crash that much worse ??

S2007S · Sep 19, 2008

Quote from sprstpd:

I mean, who knows? These people are so retarded anything is possible. A line has been crossed here that is just plain embarrassing.

Buy gold, put on the tin foil hat, and hide in your bunker I say. Too many people on CNBC are just way too happy today - I am predicting pain soon.

Havent tuned into cnbc yet but I could just imagine how happy everyone is, I hope they know its only going to last 1-2 days and then its back to normal. I dont know why everyone is so happy, this is a short covering bear market rally, SELL THE RALLIES BUY THE DIPS (THE HUGE DIPS)

osorico · Sep 19, 2008

Quote from hayman:

Given today's bold and socialistic choice to ban shorting of 799 financial stocks, has anyone heard any news on the banning of short selling derivatives ?? Any talk of banning the short sale of futures such as ES or YM, which in theory encompasses the financial markets on a broader level ?

Should I be worried about the extinction of futures daytraders ???

IMO, there is cause to be worried, But not related in any way to shorting.

1) Margin requirements can be "regulated" away from exchanges... We the people now own a giant financial holding company, perhaps even a counterparty to some instruments. "They" the people don't appreciate high leverage or the 60/40 preferential tax treatment either.

2) PDT-like rules can be established. And since futures are inherently more risky than equities, it is conceivable minimum account requirements could be significantly higher than those for equity PDT rules.

JMHO
Osorico

Klamath · Sep 19, 2008

Quote from hayman:

Straying away from the topic of this thread, I am very concerned about the artificial bubble that the government is going to create with the financial equities. I hope that I'm wrong, but isn't this just going to make the crash that much worse ??

Yes, but if they can put it off past the election it doesn't matter.

Cutten · Sep 19, 2008

It's not a problem - just use futures outside the US. If necessary, foreign exchanges like EuronextLiffe or Eurex will list US futures outside the communists jurisdiction.

Even if no one did that, you can just use foreign index futures as a rough proxy. I trade US futures from the UK, no reason why US citizens can't trade UK or other foreign futures instead.

bbqbbq · Sep 19, 2008

Quote from hayman:

Given today's bold and socialistic choice to ban shorting of 799 financial stocks, has anyone heard any news on the banning of short selling derivatives ?? Any talk of banning the short sale of futures such as ES or YM, which in theory encompasses the financial markets on a broader level ?

Should I be worried about the extinction of futures daytraders ???

isn't that like impossible?
I thought for every person going long theres a person going short, whether speculator or hedger. that the money you make or lose comes out or goes in of somebody elses pockets

basically a zero sum poker game that is highly leveraged

Streetwise · Sep 19, 2008

Quote from hayman:

Straying away from the topic of this thread, I am very concerned about the artificial bubble that the government is going to create with the financial equities. I hope that I'm wrong, but isn't this just going to make the crash that much worse ??

Oh yes ....

clacy · Sep 19, 2008

Quote from osorico:

IMO, there is cause to be worried, But not related in any way to shorting.

1) Margin requirements can be "regulated" away from exchanges... We the people now own a giant financial holding company, perhaps even a counterparty to some instruments. "They" the people don't appreciate high leverage or the 60/40 preferential tax treatment either.

2) PDT-like rules can be established. And since futures are inherently more risky than equities, it is conceivable minimum account requirements could be significantly higher than those for equity PDT rules.

JMHO
Osorico

Bingo.