Spillover Effects of Counter-cyclical Market Regulation: Evidence from the 2008 Ban on Short Sales The ban on shorting had negative effects on the hedge fund industry. It also had a negative impact on the returns and the market quality of the stocks placed off limits by the ban. In a new position paper, Professor Abraham Lioui looks at the impact of the ban on broad market indices in the US and in Europe (the United Kingdom, France, and Germany). More...