Neo
Some countries have placed conditions on short selling over the years. The U.S. has from time to time placed restrictions on short selling from time to time as well. Australia has also placed restrictions on short selling from time to time and has totally banned Naked shorting at times as well.
These restrictions on short selling have generally been placed during times of financial crises to limit the damage. Short selling is also the reason for the 1929 market crash according to some records.
Short selling and HFT are mostly the reasons that retail investor are leaving the market in droves.
