2008-09-29telegraph.co.uk

Short-selling is now deeply embedded in all financial markets and it is not restricted to hedge funds. “Hedging” strategies are critical to the liquidity and smooth operation of the energy and commodity markets, the currency and derivative markets and of course equity and credit. Hedging strategies are employed by BP to hedge its oil exposure, the Church of England to protect its currency exposure and hedge funds to protect their equity exposure. The introduction of a temporary ban will have many unintended consequences and has added new price dislocations to the ones that already existed.



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