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by JumpCrisscross 1144 days ago
> excuse given is that naked shorting allows for more liquidity, but given the other problems, I think it's bad

I assume you have a counterpoint to the decades of data the NYSE, SEC, Financial Crisis Inquiry Commission and others around the world have collected that show naked shorting improves liquidity without FTDs negatively impacting price discovery while tamping volatility, evidence made particularly robust by the fact that naked shorting is permanently banned, and has been temporarily banned, in many markets, such as Australia, Switzerland and, for some stocks post crisis, in the United States? (See Wikipedia for a summary.) The whole affair reminds me of the lead up to the Onion Futures Act [1].

[1] https://en.m.wikipedia.org/wiki/Onion_Futures_Act