Market divided on Japan short-selling rules

Author: | Published: 17 Nov 2008
Buybacks will allow companies to inject more capital

In its latest move to support share prices, the Japanese government has banned naked short selling. The ban has been welcomed by many, but some fear additional regulation of shorting could damage legitimate transactions.

The ban, introduced ahead of schedule by the government, follows additional disclosure requirements introduced in October. Companies must now also disclose short positions above 0.25% every day, rather than on a monthly basis.