Sycom GM RSS feed generatorThu, 23 Jun 2011 12:07:37 GMThttp://www.www.niri.org/default.aspxIn this section you will find NIRI's comment letters and other resources on Short Selling reforms.Copyright 2009en-usWed, 08 Feb 2012 20:28:57 GMT1http://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/NIRI-Comment-Letter-to-SEC-on-Short-Sale-Reporting-Study-June-2011.aspxNIRI's comment letter regarding the SEC's study into short sale reporting practices.Thu, 23 Jun 2011 12:07:37 GMThttp://www.financialdetectives.org/?page_id=2From the investor perspective, this site provides a wealth of information on the "pro" side of short selling.Fri, 24 Jul 2009 16:38:26 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/Naked-Short-Selling-Market-Returns-academic-paper.aspxThe recent financial crisis has focused a great deal of attention on naked short sellers. However, little is known about the relation between naked short sellers and market returns. We examine market returns around naked short sale transactions to address three questions. First, are naked short sellers momentum traders who exacerbate price declines, as some claim? Second, do naked short sellers possess superior information that allows them to profit from subsequent price declines? Third, how do market participants react to information indicating increased naked short selling activity? We find that naked short sellers are contrarian investors who trade following recent positive abnormal returns. Our results provide no evidence that naked short sellers are informed traders who can accurately forecast negative returns. Instead, abnormal returns are positive in the days following increased naked short sale activity. Market participants do not view announcements that indicate increased naked short sale activity negatively, as abnormal returns are generally positive following such announcements. Overall, our results are not consistent with the recent portrayal of naked short sellers as abusive and manipulative but instead suggest that naked short sellers promote efficient markets by providing liquidity, risk-bearing, and selling stocks they view as overpriced. Fri, 28 Aug 2009 14:53:15 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/Short-Selling-and-the-Informational-Efficiency-of-Prices-academic-paper.aspxWe present direct empirical evidence that short sellers enhance the informational efficiency of prices. Using daily shorting flow data for a large panel of NYSE-listed stocks, we first show that greater shorting flow reduces deviations of transaction prices from a random walk. Second, at lower frequencies, we show that more shorting flow accelerates the incorporation of public information into prices. Third, greater shorting flow eliminates post-earnings announcement drift for negative earnings surprises. Fourth, we demonstrate that short sellers change their trading around large return events in a way that aids price discovery. These results are robust to various econometric methodologies and model specifications. Overall, our results highlight the important role that short sellers play in the price discovery process.Wed, 08 Jul 2009 11:57:00 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/NIRI-Survey-Respondents-Strongly-Support-SECs-Proposed-Short-Sale-Reforms-2009May4.aspxNIRI conducted a member survey from April 23, 2009 to May 1, 2009 to aggregate their opinions and experiences regarding short selling. Thu, 23 Jun 2011 11:41:41 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/NIRI-Advocacy-Survey-Short-Selling--Results.aspxResults from a short member survey on short selling reform proposals.Thu, 23 Jun 2011 12:01:18 GMThttp://www.sec.gov/rules/final/2009/34-60388.pdfSEC's final rule making permanent its temporary rule 204T, intended to reduce fails to deliver and address abusive "naked" short selling.Sun, 30 Aug 2009 16:24:48 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/NIRI-Comment-Letter-to-SEC-on-Regulation-of-Short-Selling.aspxRead NIRI's comment letter to the SEC on its suggested amendments to Regulation SHO.Thu, 23 Jun 2011 12:02:03 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/NIRI-Comment-Letter-to-IOSCO-on-Regulation-of-Short-Selling.aspxThu, 23 Jun 2011 12:02:42 GMThttp://www.sec.gov/news/press/2009/2009-172.htmPress release announcing the SEC's action to make permanent its temporary rule 204T, and to make short sale volume and transaction data available through the SRO Web sites.Sun, 30 Aug 2009 16:17:02 GMThttp://www.sec.gov/rules/proposed/2009/34-59748.pdfSun, 30 Aug 2009 16:50:46 GMThttp://www.sec.gov/spotlight/shortsales.htmSun, 30 Aug 2009 16:51:30 GMThttp://www.investopedia.com/university/shortselling/shortselling1.asp?viewed=1Fri, 28 Aug 2009 15:15:02 GMThttp://www.www.niri.org/Main-Menu-Category/advocate/Regulatory-Positions/Short-Selling/Aggressive-Short-Selling-and-Price-Reversals-academic-paper.aspxWe present direct empirical evidence that short sellers enhance the informational efficiency of prices. Using daily shorting flow data for a large panel of NYSE-listed stocks, we first show that greater shorting flow reduces deviations of transaction prices from a random walk. Second, at lower frequencies, we show that more shorting flow accelerates the incorporation of public information into prices. Third, greater shorting flow eliminates post-earnings announcement drift for negative earnings surprises. Fourth, we demonstrate that short sellers change their trading around large return events in a way that aids price discovery. These results are robust to various econometric methodologies and model specifications. Overall, our results highlight the important role that short sellers play in the price discovery process. Wed, 08 Jul 2009 11:53:54 GMT