EU braced for short-selling crackdown

first_img Share KCS-content EUROPEAN Union regulators would be able to ban abusive short selling of shares and naked selling of credit default swaps and sovereign debt for three months or more under a draft EU law seen by sources yesterday.The bloc’s financial services chief, Michel Barnier, has already flagged the measure he is due to publish on 15 September.It follows calls from some member states to crack down on what they saw as speculators – typically politicians’ code for hedge funds – causing mayhem in Greek and other Eurozone sovereign debt markets earlier this year.After the collapse of Lehman Brothers bank in September 2008, several EU states introduced a patchwork of short selling bans on financial shares.In May, Germany introduced a ban on all naked short selling of 10 German stocks, euro government bonds and credit default swaps on euro government bonds, shaking global markets and upsetting its EU partners who refused to follow suit.Short selling is “naked” when sellers have not arranged to borrow the assets.Following these two episodes, Barnier wants a pan-EU law on short-selling to ensure consistent, proportionate actions across the bloc in emergencies. “The regulation aims at addressing the identified risks without unduly detracting from the benefits,” the draft law said.The measure will cover all financial instruments such as shares, sovereign bonds, derivatives relating to sovereign bonds and credit default swaps linked to government bonds.The new European Securities and Markets Authority (ESMA), due to be in place from January, will be given powers to introduce emergency measures, such as bans for up to three months, renewable for a further three months at a time.In addition, if any short or naked selling of financial instruments is sparking significant falls – 10 per cent or more from the previous day –?ESMA could seek to cool markets by imposing a one-day ban on “persons” short-selling a financial instrument.a whatsapp EU braced for short-selling crackdown Show Comments ▼ Wednesday 1 September 2010 8:22 pmcenter_img whatsapp Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeOne-N-Done | 7-Minute WorkoutAdvertisement 7 Minutes a Day To a Flat Stomach By Using This 1 Easy ExerciseOne-N-Done | 7-Minute WorkoutUndoAll Things Auto | Search AdsBuick’s New Lineup Is Truly StunningAll Things Auto | Search AdsUndoNoteabley25 Funny Notes Written By StrangersNoteableyUndoThe No Cost Solar ProgramGet Paid To Install Solar + Tesla Battery For No Cost At Install and Save ThousandsThe No Cost Solar ProgramUndoLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsUndoTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastUndoSmartAnswers.netThis New Volkswagen SUV Is The Car Of Your Dreams.SmartAnswers.netUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesUndo Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofTortilla Mango Cups: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proof Tags: NULLlast_img

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