The emergency restrictions on the short-selling of financial stocks introduced by regulatory authorities at the height of the financial crisis continue to vex the securities industry. Asset managers, brokers and investors complain that the restrictions have made markets less efficient. They argue there is no substantial evidence that the move has changed share price behaviour and are stepping up their campaign to have the bans rescinded. Regulators around the world restricted short-selling in banks and other financial shares in September. Regulators acted because they believed that short-selling was responsible for large falls in the prices of financial stocks. It was, they said, giving rise to "disorderly markets" and creating further instability in the financial sector.
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