Lawmakers Broach the Idea of More Regulation on Short Sales - WSJ.com

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Reps. Nydia Velázquez and Blaine Luetkemeyer questioned whether short-selling should be subject to increased regulation, with Velázquez saying she believed it hurts “ordinary investors and families”

Rep. Nydia Velázquez and Rep. Blaine Luetkemeyer broached whether short-selling should be subject to increased regulation, with Ms. Velázquez saying she believed short-selling hurts "ordinary investors and families."

The European Union requires the disclosure of short positions above a certain threshold; that regulation has affected the size of short positions hedge funds have taken there. Rep. Luetkemeyer took note of the unusually high short interest in GameStop's stock, which topped 140% earlier this year, to ask whether limits should be placed on how much short interest there can be in a stock. He pressed Mr. Plotkin and Ken Griffin, whose Citadel LLC is a large Chicago hedge fund, to explain how the high short interest wasn't a manipulation of the stock's price. Mr.

 

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No one's forcing anyone to short a stock.

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