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Rejected: A Europe-Wide Short Selling Ban "Does Not Look Likely"

Tyler Durden's picture


Following the NYT debacle in which it announced there was a debt deal when there was anything but (in the process however sending stocks surging on nothing but what was proven to be a lie), today it appears the NYT may have gone for the double, after first reporting earlier that Europe is about to proceed with a short-selling ban. As of minutes ago, Reuters has reported that a short-selling ban "does not look likely" according to a regulatory source. In other words we are back to the yes bailout/no bailout that marked the European days of June and July, when the leakers merely gauged the market response to determine if the rumor should become policy. It seems that after having achieved the sought after (brief) market bounce on forced short covering, Europe has decided not to go ahead and impose a ban after all... At least until tomorrow's next -5% plunge in Italian and French bank stocks.

From Reuters:

European Union states are unlikely to impose a blanket ban on short-selling of stocks in response to volatile trading in bank stocks, a regulatory source familiar with the situation told Reuters.


"A Europe-wide short-selling ban doesn't look likely," the source said on Thursday.

Earlier ESMA, the European Union's financial market regulator, said it was monitoring the bank share volatility closely and was in touch with national regulators.


There has been speculation that a bloc-wide ban could be imposed since Greece banned short-selling for a period of two months earlier this week.

And moments later Italy's market regulator CONSOB added that there is no change to its short selling policy. Which of course does not mean anything.


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Thu, 08/11/2011 - 11:22 | 1550981 Cognitive Dissonance
Cognitive Dissonance's picture

I seem to remember similar disclaimers in 2008 shortly before they enacted the ban.

Plausible deniability must be in short supply again. Fire up the assembly line boys.

Thu, 08/11/2011 - 11:27 | 1551011 fuu
fuu's picture

The desperation will continue until morale improves.

Thu, 08/11/2011 - 11:34 | 1551051 bigdumbnugly
bigdumbnugly's picture

"the manager has our full confidence despite the team's woes and we do not have any immediate plans to replace him."

quote: almost any baseball GM at one time or another days before whacking the manager..

Thu, 08/11/2011 - 11:41 | 1551088 Fazzie
Fazzie's picture

 "Bankruptcy is not an option" GM press release shortly before seeking bankruptcy protection.

Thu, 08/11/2011 - 11:36 | 1551057 DormRoom
DormRoom's picture


Thu, 08/11/2011 - 11:41 | 1551086 Cleanclog
Cleanclog's picture

I still expect the manipulators to simply ban selling at all!

Thu, 08/11/2011 - 11:22 | 1550982 Racer
Racer's picture

And now they have achieved the short covering bounce anyway... did they do that to offload at higher prices to forced buyers cos they got scared??

Thu, 08/11/2011 - 11:22 | 1550984 Hansel
Hansel's picture

Great way to break a market.  F this.

Thu, 08/11/2011 - 11:22 | 1550986 jus_lite_reading
jus_lite_reading's picture


Thu, 08/11/2011 - 11:23 | 1550989 Ancona
Ancona's picture

This is spooky man. It's like 2008 all over again. Same headlines, same talking heads, same assurances by TPTF banks that unicorns will appear on the front lawn and gold coins will drop from the sky.

I say gear up, get gold, guns, butter and beans.

Thu, 08/11/2011 - 11:28 | 1551024 Doubleguns
Doubleguns's picture

That is not a unicorn, its an Incubus.

Thu, 08/11/2011 - 11:43 | 1551095 SheepDog-One
SheepDog-One's picture

Exactly, theyre trying to replay another 2008 pullout of the nosedive using the same tactics as before, problem is theres now -0- belief in printing your way out of economic collapse. 

Gold, gear, guns, lots of canned food and get out of the big cities before the riots hit which will be hundreds of times worse than Europe or mid east variety.

Thu, 08/11/2011 - 11:23 | 1550990 slow_roast
slow_roast's picture

Meh...I feel it is my patriotic duty to be short ES right now.  Only Crammer and Liesman are buying this shit.

Thu, 08/11/2011 - 11:26 | 1551004 slaughterer
slaughterer's picture

The technicals on the ES right now are fairly bullish for a change. 

Thu, 08/11/2011 - 11:28 | 1551021 fuu
fuu's picture


Thu, 08/11/2011 - 11:36 | 1551060 SheepDog-One
SheepDog-One's picture

What technicals, based upon a planted fake rumor with underlying total desperation?

Thu, 08/11/2011 - 11:41 | 1551087 WineSorbet
WineSorbet's picture

The trolls have been out in force these past few weeks.  I miss the pre QE2 days at ZH.   Eh, nostalgia ain't what it used to be.

Thu, 08/11/2011 - 12:02 | 1551169 Chip
Chip's picture

The technicals on the ES right now are fairly bullish for a change. 



I trust this sarcasm. All supports were broken days ago, and the SP 5 DMA is butting right up resistance. 

Thu, 08/11/2011 - 11:24 | 1550994 the not so migh...
the not so mighty maximiza's picture

total failure and desperation

Thu, 08/11/2011 - 11:24 | 1550999 Doubleguns
Doubleguns's picture

Chickens with thier heads cut off comes to mind.

Thu, 08/11/2011 - 11:29 | 1551029 Hansel
Hansel's picture


Thu, 08/11/2011 - 11:25 | 1551003 max2205
max2205's picture

Headline trading not for me....

Thu, 08/11/2011 - 11:26 | 1551009 lizzy36
lizzy36's picture

But ARS broke that story this morning. It has to be true. After all it was on CNBC and in the NYT's.

Btw, if the euro's can't even get together on a short ban, no way are they going to be able to come up with some sort of cohesive rescue plan.

Thu, 08/11/2011 - 11:30 | 1551032 Cognitive Dissonance
Cognitive Dissonance's picture

When the rescuer is standing in the same quick sand the rescuee is, maybe it's time to reexamine the situation.

Thu, 08/11/2011 - 11:48 | 1551109 snowball777
snowball777's picture

"Dang that was lucky...doggone near lost a $400 hand-car."

Thu, 08/11/2011 - 11:27 | 1551013 Kina
Kina's picture

Bizarre these wild swings in the market. Fear, pump, fear, pump.


The market can't survive without constant manipulation. The economy couldn't survive, with, constant manipulation.


This bus has lost its steering wheel and headed for the wall. Pump it faster Benny, you might bash through it, sorry to say there is a cliff behind the wall too.



Thu, 08/11/2011 - 11:38 | 1551076 SheepDog-One
SheepDog-One's picture

LOL yea really...only hope is someone at the factory secretly outfitted the bus with a giant parachute, but Im not banking on it.

Thu, 08/11/2011 - 11:27 | 1551015 snowball777
snowball777's picture

We will implement a randomized ban of short selling on individual stocks for indeterminate periods with 15 minute notice of changes throughout each trading day.

Codename: Operation Curveball.

Thu, 08/11/2011 - 11:34 | 1551048 SheepDog-One
SheepDog-One's picture

All they have left is spreading wild rumors daily to move markets? Wow how ultra pathetic.

Thu, 08/11/2011 - 11:27 | 1551019 Timmay
Timmay's picture

Ah yes, reverting to "tricks" to get the market up. Holy Shit.

Thu, 08/11/2011 - 11:42 | 1551091 snowball777
snowball777's picture

Silly CD, tricks are for hookers.

Thu, 08/11/2011 - 11:43 | 1551100 Cognitive Dissonance
Cognitive Dissonance's picture

Looks like you are correct.


Thu, 08/11/2011 - 11:57 | 1551153 Stumpy
Stumpy's picture

You know what they say: bitchez ain't shit but hoes and trix.

Thu, 08/11/2011 - 12:30 | 1551258 slewie the pi-rat
slewie the pi-rat's picture

The End

Thu, 08/11/2011 - 11:43 | 1551096 Dr. Engali
Dr. Engali's picture

Just another shorting opportunity.

Thu, 08/11/2011 - 11:29 | 1551028 Spitzer
Spitzer's picture

So Europe has more liberated capital markets then the US.

Thu, 08/11/2011 - 13:16 | 1551395 DosZap
DosZap's picture



1-Yr Return -55.207%
Thu, 08/11/2011 - 11:33 | 1551044 SheepDog-One
SheepDog-One's picture

So resume dumping by afternoon I guess...gee anything to pump markets for even a couple hours, as long as theyre not too desperate or anything.

Thu, 08/11/2011 - 11:35 | 1551054 Mongrel
Mongrel's picture

Desparate men . . . desparate measures.

Thu, 08/11/2011 - 11:35 | 1551055 FranSix
FranSix's picture

5-year TIPS yields now -1%. 10-year TIPS yields are now negative as well.  This is one that I really thought would reverse with the onset of deflation and see very high interest rates.  

Thu, 08/11/2011 - 11:36 | 1551064 Irish66
Irish66's picture

Is it who or what's on first?

Thu, 08/11/2011 - 11:39 | 1551080 buzzsaw99
buzzsaw99's picture

The NY Slimes reputation is getting worse daily, and that from a very low level to begin with. I quit clicking any links to them last year. They should be delisted from the exchange along with news corpse.

Thu, 08/11/2011 - 11:41 | 1551089 slyhill
slyhill's picture

"<insert TBTF here>'s balance sheet, liquidity, and capital remain strong...

Our liquidity position has not changed at all, our balance sheet has not changed at all..."

Thu, 08/11/2011 - 11:43 | 1551093 snowball777
snowball777's picture

"These are not the droids you're looking for..."

Thu, 08/11/2011 - 17:57 | 1552302 snowball777
snowball777's picture

"We don't need to mark his holdings to market..."

Thu, 08/11/2011 - 11:43 | 1551094 John McCloy
John McCloy's picture

I love it..This is more entertaining than anything on Television right now. The continual "leaks" and lies to gauge reaction or provide temporary lifts to stave off collapse is incredibly foolish. You cannot lie to the markets continually and expect the problems not to become compounded. All of these politicians and central bankers are like fucking children.

Thu, 08/11/2011 - 22:00 | 1552939 StychoKiller
StychoKiller's picture

Progressive/Socialists STILL think in Kindergarten terms, such as "fair", and "socially just" -- are you surprised?

Thu, 08/11/2011 - 11:43 | 1551098 Peter K
Peter K's picture

Rupert Murdoch shut down the NotW. Follow the lead bitch'zzzzzz.   

Thu, 08/11/2011 - 11:46 | 1551103 M.B. Drapier
M.B. Drapier's picture

I call for a police investigation into these false rumours spread to manipulate bank share prices. You know, just like the investigations into those rumours that make the prices go down.

Thu, 08/11/2011 - 22:01 | 1552941 StychoKiller
StychoKiller's picture

Interpol will investigate, just as soon as they locate some condoms! :>D

Thu, 08/11/2011 - 11:46 | 1551106 Stumpy
Stumpy's picture

I've just sold my JAN2013 CSCO calls after this ridiculous 18% spike after earnings. Good call?

Thu, 08/11/2011 - 12:43 | 1551295 slewie the pi-rat
slewie the pi-rat's picture

yes, if you are happy with it.

but these puppies were still good for over 15 months, so what were other "options" other than hold & risk the turn-back?

if the calls were in-the-money or close, you could sell  same-date out-of-the money calls and take a profit, there, and still have a "position"

if the calls were out-of-the money, maybe you could spread in time by selling calls for the summer of '12 or oct, and again, take some $ off the table, but stay at the table. 

after firing "the 10,000"  they did pretty good, eh?  L0L!  good for you!!! 

Thu, 08/11/2011 - 12:55 | 1551337 Stumpy
Stumpy's picture

Thanks for the answer Slewie. I'm a newbie here in options trading, but I'm learning fast. I don't even think I can sell options in my (retirement) account. So that was at the moment not an option.

The calls were still out of the money by about 10%. And I bought them juuuust before everything came tumbling down a couple of weeks (days?) ago. I was quite happy with the unexpected 35% profit. Pigs get slaughtered...

I still have other dogs to take care of (NOK and RIMM), so I see the selling of CSCO as risk management. And the money went to average down a long position.

I'll sleep better, so it's all good.

Thu, 08/11/2011 - 13:15 | 1551392 slewie the pi-rat
slewie the pi-rat's picture

the options "decision grids" are designed for more games than Parker Bros could imagine.  can you sell an option on 100 shares of xyz if you own it?  if not, why not?  after all, that is exactly how (one way) people who manage retirement funds create income flow.  then, you are selling a "covered" option, and you are not "short" the option.  

the sales i mentioned would also be covered by your long position.  they can be more difficult to take apart, especially during high volatility, but the ones i mentioned could be held until lower volatility and then taken down for more $ (hopefully) or "adjusted" for longer gaming enjoyment. 

p.s.  poverty buildz character!  hahaha

Thu, 08/11/2011 - 13:34 | 1551454 Stumpy
Stumpy's picture

Ah games... I hope I'll win my way out of the poor life! A 100 shares of anything is an important decision!

Yes, I can do covered calls on a registered account. But I'm not owning a 100 shares of CSCO atm. That's why I bought LEAPS, thinkin about future ownership of the shares more than short-term speculation.

The cash went to an unrelated long position in an unrelated sector (health care) that suffered badly. Think about a very low beta stock, crown jewel of our jew friends. And from the action today, I'm even happier.

Thu, 08/11/2011 - 11:47 | 1551108 scratch_and_sniff
scratch_and_sniff's picture

Austria took a massive hit today aswell for some "unknown" reason, 5yr CDS blew out 30bps to 145, ~ 26% on the day. No one seems to want to talk about it though...its "illogical" apparently.

Thu, 08/11/2011 - 14:03 | 1551526 Use of Weapons
Use of Weapons's picture

I've mentioned Austria about three times now - last year / early this year, there was some very odd business going on under the hood (involving ex JP Morgue / Moody character(s)). This might be the deflation of those efforts - although I'm guessing atm. Remember, BoAustria collapsed in 2009


So - you're probably seeing the same issue as BoA - toxic stuff that people have been hiding & politely not smelling without taking the plunge, grabbing a hack-saw and disposing of the rotting corpse.

Thu, 08/11/2011 - 11:48 | 1551110 entendance
entendance's picture

Most Americans can't afford a $1,000 emergency expense

Thu, 08/11/2011 - 13:00 | 1551349 slewie the pi-rat
slewie the pi-rat's picture

and they need to be able to "afford" this, because...?

you know, when something is necessary, many people somehow find a way, or hadn't you noticed?

you are a fuking troll, asswipe!

Thu, 08/11/2011 - 13:27 | 1551436 DosZap
DosZap's picture

entendance @11:48

There was a Poll taken of around 1500 US families.

They were asked, if you HAD to come up with $3,000.00 cash,in (I think 90 days,or what time period)could you?.

It was broken down (by chance) into 3 groups...............

33% Said YES, Immediately.

33% Said in 90 days , MAYBE, leaning to probably.................

33% said NO WAY

Now, that is some sad shite.

Thu, 08/11/2011 - 13:47 | 1551487 Stumpy
Stumpy's picture

Depends... Is gold money?

Thu, 08/11/2011 - 13:53 | 1551497 Stumpy
Stumpy's picture

The poll would have been way cooler if formulated this way: would you be able to come up with 1 113 000 grains of silver? 

Answers: 1) no, 2) yes, 3) wtf is a grain?

Thu, 08/11/2011 - 14:35 | 1551603 slewie the pi-rat
slewie the pi-rat's picture

pls don't feed the trolls, D_Z

nuke the shitheads!  hahaha!

Thu, 08/11/2011 - 11:48 | 1551113 FranSix
FranSix's picture

Swiss short term rates up to 3-year bond negative:

Thu, 08/11/2011 - 11:56 | 1551143 Zero Debt
Zero Debt's picture

So when US BLS numbers are 1.xx % better than expectations a >3% rally in major US, EU markets is triggered..

What happened with U6? Labor force dropouts? EU industry employment? Trade deficits? Budget deficits? Bank solvency?

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