Szafarz, Ariane; Bernal Diaz, Oscar; Herinckx, Astrid - Centre Emile Bernheim, Solvay Brussels School of … - 2013
Exploiting cross-sectional and time-series variations in European regulations during the July 2008 – June 2009 period, we show that: 1) Prohibition on covered short selling raises bid-ask spread and reduces trading volume, 2) Prohibition on naked short selling raises both volatility and...
