| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 961046 | Journal of Financial Markets | 2013 | 32 Pages |
Abstract
⺠Market makers enjoyed a narrow exception to short sale locate and close-out rules. ⺠Exception elimination affected optionable and non-optionable stocks differently. ⺠Optionable FTDs were lower and stock borrow prices higher after elimination. ⺠Higher stock borrow prices led to more FTDs when settlement failure was an option. ⺠Our findings are consistent with anecdotal evidence that the Exception was misused.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Thomas Stratmann, John W. Welborn,