The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – has welcomed the lifting of the Australian short selling ban.
Andrew Baker, AIMA ceo, said, “This is the last of the major bans on short selling to have been lifted and we are delighted that Australia has followed other leading economies in this respect. As the global hedge fund trade body AIMA has been at the forefront of campaigning against these bans – all the research done on them, including quite independent studies, showed that they did not achieve their goals, and in fact often actually worsened matters.
The lifting of this ban means there is now broad international consensus that short selling is an absolutely legitimate market practice. It creates liquidity in capital markets, assists price discovery, and is an invaluable tool in terms of risk management.”
AIMA Australia’s chairman Kim Ivey added, “This is a clear confirmation that the ban did not need to be in place for eight months and it warranted an immediate removal. Its removal now places Australia on par with other sophisticated markets. It also removes a major deterrent for investment in talented Australian hedge fund managers who transact on the ASX.”
