The Investment Management Association's Director of Wholesale, Guy Sears, evaluated the risks connected to the ESMA advice.
      
    
    
      
	In its response to the European Securities and Markets Authority's (ESMA) draft technical advice on the regulation of short selling, IMA  Director of Wholesale, Guy Sears, said: “Our member firms strongly support having a consistent definition and approach to short selling across the EU. However, ESMA’s advice to the EU Commission appears to contradict the original regulation on hedging across national boundaries by proposing limits. This would be against investors’ interest and could run the risk of increasing the cost of investment in EU economies. We are also concerned that the consultation process has had to be very rushed; no-one wants this important work to result in sub-standard legislation.”
	Press release
	ESMA's draft technical advice
      
      
      
      
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