Germany's Finance Ministry proposed extending the prohibition of naked short selling of securities as announced last week by the BaFin. The ban would cover all stocks and Euro currency derivatives not intended for hedging.
Germany's Finance Ministry proposed extending the prohibition of naked short selling of securities as announced last week by the BaFin. The ban would cover all stocks and euro currency derivatives not intended for hedging.
The draft bill will be discussed by the German cabinet next week and will also include a new "transparency system" for short selling.
"Naked short selling of stocks and the debt of euro-zone states that are listed on a domestic exchange in a regulated marketplace will be forbidden", the proposal says.
German Finance Ministry proposal outlines a two-tier "transparency system" that would include oversight of some naked short-sale assets by Germany's BaFin, and mandatory public disclosure of larger short-sale holdings.
Short-selling credit default swaps on euro-zone debt without ownership of the debt obligation and euro currency derivatives not meant for hedging would also be prohibited, the ministry said.
© Graham Bishop
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