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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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.

fuu's picture

The desperation will continue until morale improves.

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..

Fazzie's picture

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

Cleanclog's picture

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

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??

Hansel's picture

Great way to break a market.  F this.

jus_lite_reading's picture


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.

Doubleguns's picture

That is not a unicorn, its an Incubus.

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.

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.

slaughterer's picture

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

SheepDog-One's picture

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

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.

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. 

the not so mighty maximiza's picture

total failure and desperation

Doubleguns's picture

Chickens with thier heads cut off comes to mind.

max2205's picture

Headline trading not for me....

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.

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.

snowball777's picture

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

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.



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.

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.

SheepDog-One's picture

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

Timmay's picture

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

Spitzer's picture

So Europe has more liberated capital markets then the US.

DosZap's picture



1-Yr Return -55.207%
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.

Mongrel's picture

Desparate men . . . desparate measures.

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.  

Irish66's picture

Is it who or what's on first?

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.

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..."

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.

StychoKiller's picture

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