Stock Lending

I was involved in setting up banking and investment systems in Central European countries in the early nineties and it became obvious to me that short selling shuld be made illegal.

This would reduce the income to pension funds who benefit by lending the stock who receive payment from the short sellers for lending the stock, even if it results in the share prices of the stocks they hold being reduced.

Therefore it is not the short selling it is the lending of stock to the short sellers which could be ended. The pension fund trustees can do this by simply not allowing their stock to be lent. Trusstee approval has to be given before this process is entered into. So, if you are going to achieve anything then stop this practice immediately.

There should also be an investigation into the Contracts for Difference, this is nothing short of gambling and must not be allowed.

I do know that the Inland Revenue does not look favouably on trading by pension funds and they should enforce trading rules with an iron fist.