FSA rejects requests to ban short selling of property stocks

The UK 's Financial Services Authority (FSA) has rejected pleas from a dozen listed real estate companies to ban short selling of their shares. The FSA was inundated with requests from property companies following the introduction last week of a ban on shorting banks and insurers.

Earlier this week, Reita, the UK's education and awareness campaign for property investment and real estate investment trusts, called on the FSA to extend the ban on short selling of stocks to the commercial property sector. The organisation suggested that the ban in the financial sector could tempt short sellers to seek opportunities in the property sector. Reita said expanding the ban would help the commercial real estate sector to address continuing market volatility.