Handbook of Short Selling

Editor-in-Chief:

Greg Gregoriou, School of Business and Economics, State University of New York, Plattsburgh

This comprehensive examination of short selling, which is a bet on stocks declining in value, explores the ways that this strategy drives financial markets. Its focus on short selling by region, its consideration of the history and regulations of short selling, and its mixture of industry and academic perspectives clarify the uses of short selling and dispel notions of its destructive implications. With contributions from around the world, this volume sheds new light on the ways short selling uncovers market forces and can yield profitable trades.

Audience
Primary: Academics worldwide working in subjects connected with trading, risk management, financial modeling, financial regulation, and financial economics in general. Secondary: Professionals working in trading, risk management, financial modeling, financial regulation, and financial economics.

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Hardbound, 624 Pages

Published: September 2011

Imprint: Academic Press

ISBN: 978-0-12-387724-6

Reviews

"The global financial crisis triggered a debate about pros and cons of trading practices such as short selling and required policy responses. This is precisely the theme of this work. It has been well chosen and exhaustively analyzed, making this book a mandatory reading for anybody with an interest or responsibilities in the microstructure of financial markets." --Marco Rossi, Senior Economist, International Monetary Fund "This book is a very timely and extremely useful guide to the subtle and often difficult issues involved in short selling - a subject that is more relevant than ever since the financial crisis. It is written by many experts and covers by its manyfold chapters all aspects of short selling from different international points of view. It will surely lead to many new insights." --Carsten S. Wehn, Head of Risk Modelling, DekaBank, Germany "Short selling so far has been an investment technique that was wildly misunderstood by politicians, academics and practitioners alike. This book with 39 chapters written by leading academics and practitioners represents the ultimate resource for everyone who wants to really understand the concept. The Handbook of Short Selling covers regulation and best practices in various countries, the effect of short-selling bans throughout the financial crisis, as well as the diversification benefits of the addition of short sellers to a traditional investment portfolio." --Dieter Kaiser, Director of Investment Management, Feri Institutional Advisors GmbH "Many people are discussing the role and the effects of short selling in the (current) financial crisis, but these experts contributing to the 'Handbook of Short Selling' really know what they are talking about. The Handbook is a must read for every participant in the capital markets." --Christian Hoppe, Commerzbank AG, Frankfurt am Main "Short-selling is a prevalent feature of modern financial markets which has become hotly and controversially debated. The 'Handbook of Short-Selling' couldnt be more timely. It provides an accessible and comprehensive treatment of the subject. It is a valuable reference for anyone interested in understanding the role of short-selling in the financial crisis of 2007-2009." --José Manuel González-Páramo, Member of the Executive Board, European Central Bank

I. REGULATION IN THE US AND CANADA
1. Short Sales and Financial Innovation: How to take the Good while Avoiding Widespread Default
   Graciela Chichilnisky
2. Goldman Sachss Short-Sale Swap Shop
   Edward Pekarek and Christopher Lufrano
3. Off-Shore Short Sales after Morrison: Will the SEC be Emboldened or Constrained?
   Ed Pekarek and Soufiane Cherkaoui
4. Regulating Short Sales in the U.S. in the 21^st Century
   Houman B. Shadab
5. The Evolution of Short Selling Regulations and Trading Practices in the US
   Chinmay Jain, Pankaj K. Jain and Thomas H. McInish
6. Financing Techniques for Short Sellers
   Stuart McCrary
II. EUROPEAN MARKETS
8. Are Restrictions on Short Selling Good? A Look on European Markets
   Mohamed El Hedi Arouri, Fredj Jawadi, Duc Khuong Nguyen
9. Short Selling and Clearing Settlement in Europe: Relations and Implications
   Daniela Russo and Simonetta Rosati
10. The 2008 Emergency Regulation of Short Selling in the US, UK and Australia
   Kym Sheehan
11. Reflections on Short Selling Regulations in Western and Eastern Europe
   Jeannine Daniel and François-Serge Lhabitant
12.Regulating Short Selling: The European Framework(s) and the Regulatory Arbitrages
   Giampaolo Gabbi and Paola Giovinazzo
13. Do Option Prices Reveal Short-Sale Restrictions Impact on Banks Stock Prices? The German Case
   Stefano Corradin, Marco Lo Duca, and Cristina Sommacampagna
14. Short Selling in France During the Crisis: The Bans and What has Changed Since the Euro
   CorrectionEmmanuel Fragnière and Iliya Markov
III. CHINA, JAPAN AND AUSTRALIA
15.The Chinese Real Estate Bubble: Is it an Opportunity for Short-Selling?
   Peter Treadway and Michael C S Wong
16. Introduction of Margin Trading and Short Selling in Chinas Securities Market: The Case of the Disordered Warrant Prices
   Wei Fan, Qingbin Meng, Liu Yang, Lingqing Xing and Sihai Fang
17. The Impact of Short Selling on China Stock Prices
   Michael C. S. Wong and Kaiguo Zhou
18. Short Selling the Real Estate Bubble in China
   Kaiguo Zhou
19. Impact of Macro Indicators on Short Selling: Evidence from Tokyo Stock Exchange
   M. Nihat Solakoglu and Mehmet Orhan 20. The New Regulatory Development for Short Selling in Asia
   Jeannine Daniel and François-Serge Lhabitant
21. Short Selling in Australia: The Current State of Play in Practice and in Regulation
   John Simpson, Peter Mayall and Mathew Ratty
22. Sourcing Securities for Short Sales: The Proper Legal Characterisation of Securities Loans in Australia
   Paul U. Ali
IV. EMERGING MARKETS
23. Short-Selling in Emerging Markets: A Comparison of Market Performances during the Global Financial Crisis
   Mario A. Maggi
24. A Review of Short Selling in Emerging Markets: Latin America and Eastern Europe
   Miguel Díaz-Martínez and Emmanuel Fragniere
25. Short Sales: Ambrosia or Kryptonite for Emerging Markets?
   Ed Pekarek and Maryam M. Meseha
26. Short Selling Consistency in South Africa
   Dave E. Allen, Robert J. Powell and Abhay Kumar Singh
27. Short Selling in Russia: Evidence from Medium and Long-Term Portfolio Strategies
   Dean Fantazzini, Alexander Kudrov, Andrew Zlotnik and Elena Dukhovnaya
28. Performance Persistence of Short Sellers
   Meredith A. Jones
29. An Empirical Analysis of Short Biased Hedge Funds Risk-Adjusted Performance: A Panel Approach
   Greg N. Gregoriou and Razvan Pascalau
V. PORTFOLIO MANAGEMENT AND PERFORMANCE
30. Short Selling by Portfolio Managers: Performance and Risk Effects across Investment Styles
   Russell B. Gregory-Allen and David M. Smith
31. Short Selling in an Asset Allocation Framework--the Search for Alpha
   Nils S. Tuchschmid, Erik Wallerstein and Sassan Zaker
32. Machine Learning and Short Positions in Stock Trading Strategies
   David E. Allen, Robert Powell and Abhay Kumar Singh
33. Short-Selling Stock Indices on Signals from Implied Volatility Index Changes: Evidence from Quantile Regression Based Techniques
   David E. Allen, A Kramadibrata, R. Powell and A K. Singh

VI. MODELING, EARNINGS AND ANNOUNCEMENTS
34. Short-Selling and the Equity Premium Puzzle
   Jorgen-Vitting Andersen
35. Affine Term Structure Models and Short-Selling: The Liberal Case against Prohibitions
Vicente Jakas
36. Short Sale Constraints in the Equity Market and the Term Structure of Interest Rates
   Abraham Lioui
37. Short-Selling Assessment Where Consumer Prices Involve both Currency Trades and Weather Shocks
   Jack Penm and R. Deane Terrell
38. Aggregate Short Selling during Earnings Seasons
   Paul Brockman, Andrew Lynch and Andrei Nikiforov
39. The Information Content of Short-Selling before Macroeconomic Announcements
   Paul Brockman and (Grace) Qing Hao

Handbook of Short Selling

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