We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
Fails-to-Deliver before and after the Implementation of Rule 203 and Rule 204.
- Authors
Jain, Archana; Jain*, Chinmay
- Abstract
We study the determinants of fails-to-deliver in the period before and after the implementation of Rule 203 (elimination of option market maker exception from the locate and close-out requirement) and Rule 204 ( t+3 close-out rule) in September 2008. We find a positive relation between short selling and fails-to-deliver that weakens after the implementation of these rules. Fails-to-deliver are higher for stocks with low institutional ownership, low book-to-market, small market capitalization, high turnover, and put option availability. The relation between short selling and these measures of borrowing costs is also weaker after the implementation of these rules.
- Subjects
SHORT selling (Securities); HEDGING (Finance); SPREAD (Finance); BUSINESS turnover; FINANCIAL performance
- Publication
Financial Review, 2015, Vol 50, Issue 4, p611
- ISSN
0732-8516
- Publication type
Article
- DOI
10.1111/fire.12093