FSA short-selling block backed by lawyers
Lawyers have come out in support of the Financial Services Authority's (FSA's) decision to put a temporary hold on short-selling in a bid to restore market confidence. The dramatic intervention by the regulatory authority comes in the face of market abuses which have seen investors making huge profits from ailing businesses.The ban on shorting is effective until 16 January, 2009, when the FSA will take a view on the market conditions and decide whether to extend the trading restrictions.FSA chief executive Hector Sants said: "While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets."
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