Official Statement From French Regulator On 15 Day Financial Short Selling Ban

Tyler Durden's picture

The 15 day short selling ban (which appears to include all shorts, not just naked ones), includes the following names: April Group, Axa, BNP Paribas, CIC, CNP Assurances, Crédit Agricole, Euler Hermès, Natixis, Paris Ré, Scor, Société Générale. We wonder whether the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls on the names in question or maybe nobody in the French regulatory body has graduated beyond cash products and into derivatives. And the kicker, August 26 just went supernova, as this is the day the short selling ban expires, the BEA reports the second, sub 1% GDP revision, and Bernanke presents his 2011 Jackson Hole keynote speech.

In English:

AMF English

And the original:

 

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hambone's picture

Isn't this the equivelant of blood in the shark infested waters???

caerus's picture

for shit's sake buy our shares!!! please!!! 

In Fed We Trust's picture

Gee I wonder if I own the stock , Can I sell it?

Good then sell the bitch.

A short ban does nothing but insinuate to those who own the stock to dump it there by causing a crash .

Based on these new article I now change my answer to What's happens Fruday?

cRASH 800 Monday the same. Tuesday the BerNake saves the world but now their are only 6 players left at the world poker tour.

In Fed We Trust's picture

Or maybe it will be Timmy to save the day like Paulson did in 2008?

I can see the head line now. "Obama has another noble peace prize willing idea. How about the "AMERO"

I heard it is already trading at a gs built exchange in the basement of the tower.

Jasper M's picture

Tinny Timmah couldn't intimidate a room full of gerbils.

Paulson, evil goon of the banksters that he was, at least had presence. Like Darth Vader –
"I find your lack of faith in Ponzinaomics . . . Disturbing"

Drag Racer's picture

Now we wonder if the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls

SSSHHHHH

karzai_luver's picture

merde................merde.........merde

 

Spaghetti Monster's picture

It's time for Calvin-ball again...!

Cognitive Dissonance's picture

Go long popcorn and Jack Daniels August 26th. Because that's when professional Calvin Ball kicks off.

Are you ready for some Calvin Ball?

fyrebird's picture

Nobody is ever ready for Calvin Ball.

Kali's picture

ah shit, ya mean my soccer shoes, hockey stick and football helmet won't help?

fyrebird's picture

Won't help? Why, they are absolutely essential along with the usual colander and a box of pocky sticks.

However you still won't be ready because it's Calvin Ball.

Basic principles, ya know.

 

New_Meat's picture

the first rule of Calvin-ball is ...

StychoKiller's picture

No one knows all the rules of Calvin-ball!

Jayda1850's picture

The bureaucratic regulators have a complete lack of any understanding of HFT and out of control algos, they will always be atleast two steps behind the market.

 

Rainman's picture

They should just put a big sign on their backs that says FUCKED R US 

treemagnet's picture

In my best Yoda voice....."Fucked, we are..."

Taku's picture

Disclaimer: Not all shorts are equal. Tuesday mornings excluded. If full moon seen, await next blue moon. May be allowed Wednesday lunch hours unless falls on a 15th.

myztix's picture

Well it's only a 15 day ban.. so I don't think that will affect options that expire next month.. or so...

PhattyBuoy's picture

August 25, 2011 ~ Jackson Hole Economic Meeting

Coincidence?

myztix's picture

Um 8/25 is 14 days.

8/26 is 15 days. so effective now means effective till close of 8/26. starts back up the monday after..

magpie's picture

Why don't they just put up a sign: "Stock Market, Keep out"

Fascist Italy actually did that, blaming volatility on "immoral" persons trading, too many pickpockets and prostitutes running around the trading floor.

Kat's picture

Exactly my thought as I read that comment.

augie's picture

holy shit. So close to september 11th too... all it would take to solve this mess is just another small war.... if only there was a way. 

evanesce's picture

A synthetic short on financial names is even easier and doesn't require options. Simply short an index and go long NON-financial index components. Same effect, different means.

treemagnet's picture

Can you imagine the spreadsheet necessary to track, coordinate, and remember all this Fed bullshit, lies, and outright theivery?  They must have a server farm the size of football field.  Is that how Cisco and Oracle did it?!

Elooie's picture

idiots. Ill just wait a few days for it to bounce and then Ill buy my puts.

SovietCong's picture

Ok, so the ban is on taking (not yet on maintaining) net short position, seems like they don't care if it's naked.

Next up: position limits on puts on financials until Jackson Hole.

Westcoastliberal's picture

****WARNING!*****WARNING******

This is an Emergency Ejaculation System OFFICIAL Alert

Password X-Ray/Zulu 123

 

If you currently own any of the following, TSHTF....BAIL OUT IMMEDIATELY!!!

April Group, Axa, BNP Paribas, CIC, CNP Assurances, Crédit Agricole, Euler Hermès, Natixis, Paris Ré, Scor, Société Générale

END OF MESSAGE

This is NOT investment advice, and don't forget to wipe.

Cman5000's picture

How bad of a drop could we have ?

fyrebird's picture

How far is down?

It might be an Alice and the rabbit hole kind of moment. Prepare to be amused.

YesWeKahn's picture

Actually, buying and selling stocks in France used to be very hard 10 or 15 years ago, I don't know if that has changed. I don't know if they even let individuals to buy and sell options.

Cman5000's picture

I don't claim to understand all of this...All i know is i have been preparing for the last 3 years and i know this is going to end badly for a lot of people that aren't prepared to ride out this storm.

YesWeKahn's picture

Without shorts, how can the market shot up 4% today? These guys are morons.

MoneyWise's picture

What is the reason for that? Traders still can buy
PUT options do they? Same as good as short..

snowball777's picture

Dans L'Union des républiques socialistes animales, quelques animaux sont plus égaux que d'autres.

BlackSea's picture

Translation: In the socialist animal republics, some animals are more equal than others.

Also, some are shorter, bien sur.

snowball777's picture

Sar-coh-zeee? C'est vous? ;)

Kat's picture

We wonder whether the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls on the names in question

 

I have dealt with market regulators for many years. The answer is "no". 

If they understood the options market, they would fuck that up too - at least as badly as they've fucked up the stock market.  And now the bond market.

bid the soldiers shoot's picture

" We wonder whether the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls on the names in question"

Pardon my ignorance but isn't there a huge difference between buying and selling derivatives and selling short the underlying instrument which you never bought, you do not own and only plan on buying at a future date when the price is, you hope, much lower?

By limiting stock selling to only those who actually own the stock, the market reduces the size on the sell side and reduces the pressure on the stock to the down side.

At times of panic, it seems the sensible thing to do.

Rikki-Tikki-Tavi's picture

Close call but just in time for the Q2 GDP number (aka Le Donut) release.