OCV octaviar limited

short selling reforms too late for mfs and ocv, page-9

  1. 191 Posts.
    short selling and this is not specific to OCV can cause major problems if it triggers margin calls when price points are breached and i think this is where there is an issue.
    for example if say a large fund had details of what price points need to be triggered to force margin calls and other instruments tethered to a companies share price they can lay siege to a company to affect these triggers and as a result reshape a company simply by short selling.
    how to remedy this is a difficult question and perhaps the ASX might have to remove or limit more rigorously exotic trading forms and only allow or licence certain companies to be able to act in this area in certain stocks.
    that being said the ASX do not have a history of acting proactively on any matter.



 
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