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A comment on Statement of SEC Regarding Recent Market Volatility. Parent comment

Re:Statement of SEC Regarding Recent Market Volatility by kgwgk on Friday January 29, 2021 @11:38AM (#25959180)
You could stipulate whatever you wanted, but there is nothing special about that threshold in particular.

I fully agree that derivatives can create all sort of problems in many cases, including when the nominal amount of the positions is much higher than the actual amount of the underlying.

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Re:Statement of SEC Regarding Recent Market Volatility by FabHK on Friday January 29, 2021 @11:42AM (#25959233)
Agreed fully. The 2x long, -1 short limit is just a neat, natural limit that one could discuss, and might be easier to enforce than other (similarly arbitrary) limits.
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Re:Statement of SEC Regarding Recent Market Volatility by kgwgk on Friday January 29, 2021 @11:44AM (#25959263)
I'm not against that, but it's not trivial to implement either.
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Re:Statement of SEC Regarding Recent Market Volatility by FabHK on Friday January 29, 2021 @12:23PM (#25959794)
Would require to set up a central registry or so, yeah. (Or finally a use case for blockchain!!!1!!! :-)

Not sure it would be worth it, I think historically excessive shorting has rarely been a problem, except for a few colourful episodes like these.

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