How to get a net short position when a shorting ban is in place

This is one for the derivative geeks, I’m wondering whether there are any novel ways that I haven’t heard about to obtain a net-short position on certain stock (banks maybe) when there is a short selling ban in place for those stock?

One way would be to short a futures market like a industry specific EURO STOXX Futures Index (banks maybe) but there are many other ways to capture the trade and this one is extremely riskier than other possible trades.

 
Best Response

If you can find ETFs that have similar holdings and one has your target short stock and the other doesn't, you can short the ETF with the desired stock while taking a long position in the others. Obviously not perfect and required really good balancing, but could find a way to weight everything so that it offsets everything but your target.

Could sell calls too

 

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