Bottazzi, Jean-Marc; Luque, Jaime; Páscoa, Mário - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2010
By introducing repro markets we understand how agents need to borrow issued securities before shorting them : (re)-hypothecation is at the heart of shorting. Non-negative amounts of securities in the box of an agent (amounts borrowed or owned but not lent on) can be sold, and recursive use of...