FSA ends ban on shorts
The FSA announced in January that it will not renew its emergency ban on short selling financial stocks. The controversial measure was introduced in mid-September in conjunction with the SEC in an effort to stabilize markets after the Lehman Brothers Holdings bankruptcy. The SEC’s ban ended in early October, just days after President George W. Bush signed the $700 billion Troubled Asset Relief Program.
The FSA will require short sellers to continue disclosing their positions until July and disclose significant changes to short positions.
USFE closes
The U.S. Futures Exchange (USFE) has shut down, according to former USFE CEO John Spiegel. Its principal shareholder, MF Global, put the exchange up for sale on Dec. 17, hoping to find a buyer by Dec. 31. MF Global CEO Bernard Dan said in a statement the decision was based on a commitment “to appropriately allocate human and financial capital.” USFE was initially formed in 2003 by Eurex. In 2006, Man Group, the parent company of MF Global, purchased a majority stake from Eurex.
Gulf dollar
The Dubai International Financial Centre has recommended the Gulf Cooperation Council create a common currency. The new currency would be weighted 45% against the U.S. dollar, 30% euro, 20% Japanese yen and 5% British pound.
