A growing number of companies in the UK and US have been appealing to regulators for protection from short selling after the practice was banned or restricted for banks and other financial stocks in many countries last week. The SEC on Monday gave US exchanges control of the list of stocks protected from short sellers, which was extended to an extra 96 companies. New restricted stocks include carmaker GM, industrial group General Electric and GLG Partners, the hedge fund. Calls for protection have come particularly from property groups, where trade bodies fear their shares could come under assault from short sellers. GE said it had requested inclusion in the SEC’s list, while GM said it had not asked to be included. Under the new SEC rules, companies can opt out of the list, although the New York Stock Exchange said that none had so far.

This entry was posted by Gwen Robinson on Tuesday, September 23rd, 2008 at 5:37 and is filed under Capital markets, Hedge funds. Edit this entry.