Traders take advantage of short-sell loophole
TRADERS are getting around last week’s ban on short-selling by the FSA by turning to fixed-odds financial betting according to financial bookmakers www.BetsForTraders.com.
The site has seen a surge in the number of bets placed against banking stocks following last week’s ban by the FSA, with the most popular stocks being Royal Bank of Scotland, Lloyds TSB, Barclays, Goldman Sachs, CitiGroup and Morgan Stanley.
In the last 24 hours 74% of bets on the Royal Bank of Scotland and 85% of bets on Barclays have been on the banks’ share prices falling.
Ryan Kneale, chief market analyst at www.BetsForTraders.com said: “Thanks to the ban, fixed-odds financial betting overnight became the only way of shorting a bank and it was inevitable that traders would find this loophole as they scrambled to get around these protectionist rules.”
As a fixed-odds financial bookmaker, BetsForTraders.com enables betting on the event of the share price falling and does not include any contracts or buying or selling of the actual shares.
It is therefore not subject to the FSA’s ruling, which applies to spread betting companies and brokerage houses.
