Financial Regulatory Forum

Europe’s naked short selling ban leaves investors with skin in the game

By Guest Contributor
December 4, 2012

By Christopher Elias

LONDON/NEW YORK, Dec. 4 (Business Law Currents) – New European short selling regulations are dressing naked short sellers in a regulatory straightjacket, but ill-fitting provisions may leave investors with skin in the game.

Short-selling and CDS regulation in EU: Less to nakedness than meets the eye, funds and firms argue

By Guest Contributor
March 5, 2012

By Peter Elstob

LONDON/NEW YORK, March 5 (Thomson Reuters Accelus) - Regulators and market participants continue to differ fundamentally over when a credit default swap should be deemed to be uncovered, or ‘naked’, and when investors are using CDS as a legitimate hedge. If a sovereign CDS can be demonstrated to be hedging counterparty or systemic risk, it can be exempted from the provisions of the proposed European short-selling regulation, which is aimed at abusive use of sovereign CDS by financial institutions to bet against countries’ debt.

EU’s Barnier says will tackle short-selling

March 17, 2010

   BRUSSELS, March 17 (Reuters) – The European Commission will crack down on “naked” selling and speculation in the market for credit default swaps with proposed controls as soon as June, the EU’s financial markets chief said on Wednesday. (more…)

South Korea to push for naked short selling of bonds

By Reuters Staff
November 20, 2009

By Cheon Jong-woo and Seo Eun-kyung
SEOUL, Nov 20 (Reuters) – A top South Korean regulator said on Friday the authorities would take steps to encourage local and foreign banks to use naked short selling of bonds, a move analysts said could trigger a flood of foreign buying.

ANALYSIS-Enforcement key to curbing naked short selling

By Reuters Staff
July 30, 2009

By Leah Schnurr
NEW YORK, July 29 (Reuters) – Efforts by U.S. securities regulators to clamp down on an abusive type of short selling could help prevent manipulation in the market, but the rules amount to nothing without better enforcement.

U.S. SEC adopts permanent ban on “naked” short selling

By Reuters Staff
July 28, 2009

WASHINGTON, July 27 (Reuters) – U.S. securities regulators made permanent a rule designed to clamp down on an abusive type of market activity known as naked short selling, the Securities and Exchange Commission said on Monday.