‘When AVZ leaves the 200 the shorts don't need to returned’....that totally depends as to where those shorts were borrowed from .
Considering the number of 90-100m which bounced up on the board in one hit; that would suggest that a large fund bought them up and these were used as hedge...considering that 90-100m block appeared out of nowhere on entry to the asx200 and not prior to that...well that suggests that they were bought and out for borrow by a fund whom lurks at depths only asx200 deep.
So they will require those shorts to be closed / returned before they themselves will dispose of them.
’the shorts can choose to close when ever they want’ .....so you reckon once they get recalled, they can just ignore and say - ‘on my time mate’ ...we’re nearly getting in the realms of naked short selling now, which is illegal ; so no point pushing that boundary .
AVZ effectively drops back into the All Ords...i think you’ll find that the availability of stock for shorts is pretty tight down there; certainly wasnt available like most other stock when it was in the All Ords last time round
