IMA throws weight behind short selling

In its response to the FSA's Discussion Paper DP09/1 on short selling, the IMA outlined a number of benefits which the well established activity of shorting can bring to investors and markets. However, it states while short position disclosure to the regulator is an important check on the markets wider disclosure is not required. It argues this could be detrimental from a competitive point of view as it could allow market users to "free ride" off others' positions. The IMA adds market disclosure of short positions could also mislead investors who may assume a stock is being shorted due ...