Banning short tender seems to me to be as dumb as banning other forms of short selling. I just missed out on a huge ATW bond arbitrage opportunity because I couldn't short tender them.
Why is short tender illegal?
- Thread starter ScroogeMcDuck
- Start date
One issue is that it leads to gaming in pro-rata tenders where the rational behavior becomes everyone short tendering an infinite amount.
So just require a locate...