redbacka"I'm certainly not trying to talk down CNP"You can't be...

redbacka
"I'm certainly not trying to talk down CNP"

You can't be serious?? You have been relentless. The only reason i can see you coming out with a statement like that is that perhaps now you are starting to realise that you were wrong.




"Ordinarily, all trades have to be registered and must be disclosed to the stock exchange by nine the morning after the transaction. It is crucial information that ensures the efficiency of any market and ensures transparency.

But the hedge funds have found a legal loophole here that has allowed them to keep their trades secret. They get around the rule by "borrowing" shares. Where do they get them from? The chances are, if you have put money into a share investment fund or a superannuation fund, those shares are held by what is known as a custodian.

The custodian looks after the stock and does all the paperwork, allowing stockbrokers and super funds to get on with their business. The custodian charges a fee. But often a custodian will offer funds or brokers a discount if it can be allowed to "lend" the shares to other market players - such as hedge funds. And of course the custodian gets a fee for that too.

The hedge funds use these borrowed shares to sell into the market and force down the price. And they have obtained legal advice that, because they have borrowed the shares, they don't have to report the trades as "short selling". So the true scale of the selling has been hidden from authorities.

In recent months, the traders have stepped up the pressure. On top of the selling, they add in a nasty rumour to drive the price even lower. Given the sudden collapse in Centro Properties and Allco, these have been surprisingly effective."

the scale of this borrowing by foreign hedge funds working in packs is the concern. A local hedge fund,trying to cause a 30% drop in CBA shares ( or Centro), would stand out like a sore thumb if it tried the same trick on its own.

i for one do not appreciate my super shares being used to short shares that i also hold in the market.