Alternative Investment Management Association
17 December 2008
Academic research from Professor Ian Marsh and Norman Niemer of Cass Business School, London, has been released by ISLA, AIMA and LIBA today, which finds no strong evidence that the emergency short selling restrictions imposed in various markets around the world have changed the behaviour of stock returns.
The International Securities Lending Association, the Alternative Investment Management Association and the London Investment Banking Association jointly commissioned this independent research to contribute to the wider regulatory reviews ongoing by various national and international regulatory bodies, including IOSCO (the International Organization of Securities Commissions) and CESR (the Committee of European Securities Regulators). The researchers examined daily returns on UK, US, Italian, French and German shares before and after the introduction of restrictions on short selling, including shares which are subject to the restrictions, and those which are not.
The main findings of the research are:
In a joint statement, the associations request that this research be considered carefully. They continue to offer their full support to all efforts in identifying appropriate and reasonable measures for the longer-term security and stability of the financial system. On the basis of this research, the associations see no case for continued bans on short selling as there is no strong evidence that these have been effective in reducing share price volatility or limiting share price falls.
The research is available at http://www.cass.city.ac.uk/media/stories/resources/the-impact-of-short-sales-restrictions.pdf.
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1. About ISLA
ISLA represents the common interests of nearly one hundred lenders and borrowers of securities in Europe, the Middle East and Africa. While based in London, ISLA has members in more than twenty countries. More information can be found at www.isla.co.uk.
2. About AIMA
As the global hedge fund association, AIMA, the Alternative Investment Management Association, has 1,280 corporate members worldwide, based in 47 countries.
Members include leading hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting services and fund administrators. They all benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators, worldwide.
AIMA is a dynamic organisation that reflects its membership’s interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website www.aima.org
3. About LIBA
The London Investment Banking Association is the principal trade association in the United Kingdom for firms which are active in the investment banking and securities industry. The Association represents its members on both domestic and international aspects of this business, and promotes their views to the authorities in the United Kingdom, the European Union, and elsewhere. For further information, please visit LIBA’s website at www.liba.org.uk
4. About Cass Business School
Cass Business School, City University, delivers innovative, relevant and forward-looking education, training, consultancy and research. Located on the doorstep of one of the world's leading financial centres, Cass is perfectly positioned to be the intellectual hub of the City of London. Our dialogue with business shapes the structure and content of all our programmes of study, our executive education programmes and our research. Our MBA, Specialist Masters and Undergraduate Programmes have a reputation for excellence in professional education. Our Executive MBA is ranked 13th in the world by the Financial Times.
The school undertakes research of national and international significance and supports almost 100 PhD students. Cass has the largest Finance Faculty and the largest Actuarial Science & Insurance Faculty in Europe. Our finance research is ranked 2nd in Europe and 4th in the World outside the US by Financial Management Magazine and our insurance and risk research is ranked 2nd in the world by the Journal of Risk and Insurance.
Within Cass, CassExec has been creating and delivering executive education to the world of business for more than 15 years. The disciplines we cover range from finance and insurance through to leadership, corporate governance and risk. At the heart of our success is the importance we place on working in partnership with our clients to construct bespoke programmes that truly meet their business needs.
Cass is a place where students, academics, industry experts, business leaders and policy makers can enrich each other's thinking. For further information visit: www.cass.city.ac.uk