Alternative Invest. Association
Alternative Investment Management Association
Kim Ivey, chairman of the Australian arm of the Alternative Investment Management Association said Australian banks no longer needed further government protection. He said the ban was damaging market liquidity and denying investors the ability to protect their capital in falling markets.
"The situation has reached a stage where this extension of the short-selling ban will have severe and immutable long-term effects," said Mr Ivey. "The markets are in disequilibrium – they are lurching all over the place because there is a vacuum of buying."
The Australian Securities and Investments Commission yesterday extended the ban on covered short-selling for non-financial stocks until November 19, but said a ban on shorting financial stocks would continue until January 27.