• Medientyp: E-Artikel
  • Titel: Shorting in Broad Daylight: Short Sales and Venue Choice
  • Beteiligte: Reed, Adam V.; Samadi, Mehrdad; Sokobin, Jonathan S.
  • Erschienen: Cambridge University Press (CUP), 2020
  • Erschienen in: Journal of Financial and Quantitative Analysis, 55 (2020) 7, Seite 2246-2269
  • Sprache: Englisch
  • DOI: 10.1017/s0022109019000802
  • ISSN: 0022-1090; 1756-6916
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  • Beschreibung: Using a novel database on venue short sales and market design characteristics, we ask: Where do short sellers exploit their information advantage? Consistent with the prediction of Zhu (2014), we find that exchange short sales comprise a larger proportion of trading and are more informative about future prices than dark-pool short sales, particularly when there is greater competition among short sellers to trade and in the presence of short-lived information. When examining market design characteristics, we find that dark pools offering volume-weighted average price crossing attract more short sales, whereas those offering block trading attract fewer short sales.