Tuesday, September 23, 2008

Diamond Hill and JMP Group To SEC: Take Your Short Seller Ban and Shove It

Two companies that were added to the SEC's list of stocks that can not be shorted, JMP Group, the parent of JMP Securities, and Diamond Hill Investments, have contacted the SEC and requested to be removed from the list.

Both companies employ shorting techniques as part of their trading strategies.

A source at Diamond Hill told me that they believe in free markets and that short sales make the markets more efficient. On principle they requested to be taken off of the SEC list. "Needless to say, when we contacted the SEC, they were pretty dumbfounded," says the source.

Thanks to Bob Murphy at Free Advice who pointed this story out to me.

-Robert Wenzel

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