Short interest in the London Stock Exchange has continued the upward trajectory started Sept. 7, when it broke down for seven hours.
Since then, Dame Clara Furse has had to contend with competition from the likes of Turquoise, Plus Markets and BATS as well as the death of Lehman Brothers – its would-be liquidity provider for dark pool trades.
There’s also a possible slowdown in trading volumes as the shorting ban hits. There’s no conclusive data yet but FT Alphaville notes FTSE 350 trading volumes have been below their MACD for the three days since the ban came into effect.
Clara must be looking at that list of restricted shorts with envy.
Percent of LSE market cap on loan, via Data Explorers.