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  4. Jan. 2009

Capital Markets & IT -lakyara

Financial institutions are under constant pressure to reduce costs, improve operational efficiency, adapt to regulatory changes and grow their business. NRI believes that a combination financial knowledge and information technology are crucial to the industry’s growth and development. Through our lakyara reports, NRI identifies the various capital markets and IT issues impacting our clients and the future of their business.
*Organization names and job titles are current as of the publishing dates

Jan. 2009

Capital Markets

The Folly of Demonizing Short-Selling

Sadakazu Osaki

Japan has imposed stricter restrictions on short-selling in the aim of stemming the equity market’s decline. However, even with such restrictions, equity prices have no prospect of rising unless the consensus economic and corporate earnings outlook improves. Moreover, short-selling restrictions pose a risk of diminishing liquidity and impairing the market’s price formation mechanism.