Short-Sale Restrictions and Inverse ETFs
As soon as I saw the list of 799 financial stocks which were banned from shorting I was surprised that the financial ETFs, both long and short/inverse, were not of the SEC’s list. It struck me as very odd that the inverse instruments were still trading yesterday (they were halted for some time) and that I was still able to borrow XLF. If they continue to trade (who knows if they’ll be restricted at any moment) I’m sure many traders will put their focus there. There’s an article on Morningstar’s site that delves into some of the issues surrounds these ETFs and gives some ideas on how or if to use them.
Following the announcement of …
tagged: ETFs, Inverse ETFs and Short Selling
