Billions in Secretive Derivatives at Center of Hedge Fund Blowup So its not all about shorting cash equities. Equities can be shorted in other ways (swaps and CFDs (which I thought was illegal in the US).https://www.bloomberg.com/news/articles/2021-03-29/billions-in-secretive-derivatives-at-center-of-archegos-blowup?srnd=premium&sref=d1HExRZd …
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Replying to @SalArnuk
Aren't they? I thought contracts for differences were mostly in UK/Europe and the SEC frowned on them. Now equity swaps and total return swaps... they are ok
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but could be wrong here. Am I twittersphere?
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CFDs are under a lot of scrutiny in Europe right now, Germany has very prohibitive tax regimes around them to disincentivise and the UK banned CFDs on crypto recently
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This is mostly because CFDs are marketed to retail whereas TRS are for institutions.
5:53 AM - 29 Mar 2021
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