Financial Regulatory Forum

EU’s Barnier says will mull short-selling curbs

By John O’Donnell

BRUSSELS, Jan 13 (Reuters) – The European Union’s designated financial services chief has pledged to examine curbs on short-selling and extend a planned regulatory shake-up to every corner of the industry, blamed by many for the economic crisis.

Outlining his plans to push through a welter of rules that will tighten the policing of banks as well as curbing runaway borrowing, Michel Barnier said: “We need to turn the page on an era of irresponsibility.”

“We are going to reform. No market, no financial player … should be able to escape. I will not shy away from the difficult subjects of sanctions and short-selling.”

Barnier made the remarks on Wednesday to European Union parliamentarians, who were quizzing him to test his suitability for the post of financial services chief. The job would put him in charge of a European Union banking overhaul.

Barnier, 59, laid down his agenda for a five-year term that could see investment banking shrivel in the 27-country bloc, returning bankers to their roots of no-frills lending to households and businesses.

China to launch stock index futures, short selling

By Zhou Xin and Jason Subler

BEIJING/SHANGHAI, Jan 8 (Reuters) – China has approved in principle the launch of stock market index futures as well as short selling and margin trading of stocks, the stock regulator said on Friday, giving investors badly needed hedging tools.

The reforms, approved by the cabinet in 2008 but delayed by the global financial crisis, will initially be conducted on a trial basis, the China Securities Regulatory Commission (CSRC) said in a statement on its website (http://www.csrc.gov.cn/pub/newsite/. For English translation via Google, click here.)

Index futures, which will be traded on the China Financial Futures Exchange in Shanghai, will take about three months to start up, while the trial period for margin trading and short selling will come relatively soon, the CSRC said.

U.S. SEC mulls securities lending as risks exposed

Mary Schapiro, chairman of the Securities and Exchange Commission (file photo) By Rachelle Younglai
WASHINGTON, Sept 29 (Reuters) – U.S. securities regulators are eyeing new restrictions on the multi-trillion dollar securities lending market used by short-sellers after the credit crisis revealed the industry was “anything but low risk.”

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U.S. firms oppose rules to curb short selling

GOLDMANSACHS/RESULTS   NEW YORK, Sept 29 (Reuters) – Goldman Sachs Group Inc <GS.N> and Vanguard Group Inc are among U.S. companies opposed to rules proposed by U.S. regulators to limit short selling, according to letters filed by the companies. (more…)

US push on derivatives market reform comes clearer

By Kevin DrU.S. Representative Barney Frankawbaugh
WASHINGTON, July 27 (Reuters) – The shape of the U.S. government’s proposed crackdown on the $450-trillion over-the-counter derivatives market became clearer on Monday, with Congress poised to move forward this week on other aspects of a sweeping overhaul of U.S. financial regulation.

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Italy’s Consob calls for intnl short-selling regulation

   MILAN, July 13 (Reuters) – Italian bourse regulator Consob is calling for international regulation for short-selling, its chairman, Lamberto Cardia, said on Monday.
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EU watchdogs unveil shortselling disclosure plans

    By Huw Jones
   LONDON, July 8 (Reuters) – European Union regulators unveiled draft plans on Wednesday to force short sellers of stocks to publicly disclose significant positions in a bid to crack down on those who abuse the market.
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