Blogs & Comment

Short sighted

The Ontario Securities Commission has followed the US Securities and Exchange Commission and the UK securities regulator and brought in a temporary ban on short-selling. Here’s the release.
Unlike the US, we have the uptick (or last-sale) rule here in Canada which is supposed to prevent the kind of “piling on” that the US and UK bans are supposed to put a stop to. (Read: piling on to falling financials.) Given, though, that some of the financials protected from shorts in the States are interlisted in Toronto, the OSC is worried about flood of cross-border action”regulatory arbitrage,” as OSC chair David Wilson puts it in the release.
Here’s the list of companies on the OSC’s no-short list:
Aberdeen Asia-Pacific Income Investment Company Ltd., Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Fairfax Financial Holdings Limited, Kingsway Financial Services Inc., Manulife Financial Corporation, Quest Capital Corp., Royal Bank of Canada, Sun Life Financial Inc., Thomas Weisel Partners Group Inc., The Toronto-Dominion Bank, and Merrill Lynch & Co., Canada Ltd.