Financial Regulatory Forum

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.

Shorting bans: What the four European regulators are prohibiting (and what they’re not)

By Guest Contributor
August 15, 2011

By Peter Elstob

LONDON, Aug. 15 (Thomson Reuters Accelus) – The bans on short-selling the shares in a number of banks and insurance companies (and one stock exchange) that four member states imposed on Friday did not bring the single European rulebook any closer.

Get Shorty: Europe’s Crackdown on Short Selling (Westlaw Business)

By Guest Contributor
January 20, 2011

People walk in front of a shop of French luxury fashion brand Louis Vuitton decorated for the Christmas holiday season in Bordeaux, south-western France, December 23, 2009. REUTERS/Regis DuvignauBy Christopher Elias,  (Westlaw Business)

Radical changes to Europe’s system of financial regulation are under way and with them a harmonisation of securities rules as Europe turns a corner on the drive to create a single European Securities and Markets Authority with more stringent disclosure requirements. But with not all European regulators striking the same note, the move for greater scrutiny and heightened disclosure expectations over short selling and shareholdings is making sluggish progress forward. (more…)

Can hedge funds double dip under Dodd-Frank whistleblower rules? (Westlaw Business)

By Guest Contributor
January 6, 2011

By Jesse R. Morton

NEW YORK, Jan 6 (Westlaw Business) – Whistleblower provisions in Dodd-Frank may have handed hedge funds a golden opportunity and the SEC a unique challenge.

Germany wants reports of bank-stock short positions

By Reuters Staff
March 4, 2010

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.

EU starts rollout of share short-selling regime

By Reuters Staff
March 2, 2010

By Huw Jones

LONDON, March 2 (Reuters) – Securities regulators in the European Union said on Tuesday they will start rolling out requirements for reporting net short positions in shares as part of wider efforts to improve transparency in markets.

SEC short-sale curb may apply to market makers -sources

February 24, 2010

   WASHINGTON, Feb 23 (Reuters) – U.S. securities regulators are considering new short-sale restrictions with no exemptions for market makers, people familiar with the regulators’ plans said on Tuesday. (more…)

Germany prepares tougher short-selling rules-paper

February 23, 2010

   By Matthias Sobolewski
   BERLIN, Feb 23 (Reuters) – German financial watchdog Bafin is preparing tougher rules on the short-selling of shares in big financial sector companies, a coalition document showed on Tuesday. (more…)

US SEC to mull short-sale curbs in coming weeks

By Reuters Staff
February 5, 2010

WASHINGTON, Feb 5 (Reuters) – U.S. securities regulators will consider short selling curbs in “coming weeks,” Securities and Exchange Commission Chairman Mary Schapiro said on Friday.

BREAKINGVIEWS-Chinese short-selling will be no bear’s picnic

By Reuters Staff
January 25, 2010

By Wei Gu

HONG KONG, Jan 25 (Reuters Breakingviews) – Hedge funds watching China’s markets are licking their lips at what they see as the best shorting opportunity since Enron. But while plans to allow short-selling are imminent, this won’t be a bear’s picnic. Beijing’s plans to allow two-way equity bets will give foreigners little chance. Borrowing individual stocks will be tricky, even for locals.