FIA EPTA issued two analyses of the impact of Short-selling bans

23 April 2020

FIA EPTA researched in April 2020 on the impact of bans on short-selling in European equities indexes in March 2020 during the COVID-19 coronavirus outbreak. FIA EPTA examined four indexes where a ban was applied to see whether the ban achieved its planned goal of reducing market volatility. FIA EPTA compared these indexes’ volatility levels to indexes where no ban was introduced. The conclusions were clear: the short-selling ban had no discernible impact on levels of volatility.

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