FRANKFURT, March 4 (Reuters) – German financial watchdog Bafin will introduce new rules this month requiring reporting of short sale positions in major German financial stocks.
The new rules, which come into effect on March 25, will let Bafin intervene effectively if it determines that short positions may threaten financial stability, the watchdog said in a statement.
Short-sellers are investors who borrow shares and sell them on in the hope of buying them back at a lower price to make a profit.
Bafin’s new rules will require the seller to report to Bafin net positions that exceed 0.2 percent of shares issued and make further reports for each 0.1 percentage point change from that level.
Positions from 0.5 percent and above will be published in anonymous form on Bafin’s website.