EU adopts stricter rules on short selling

The European Union agreed Tuesday to more strictly regulate the short selling of shares and bonds and to ban so-called "naked" credit default swaps on government bonds, moves officials said will contribute to financial stability.

After long discussions, representatives of the European Parliament and EU member states reached a compromise on the new rules, which restrict practices critics say have exacerbated financial crises and market selloffs.

The regulation seeks to differentiate between investors who use short-sales as a legitimate tool to hedge, or insure, potential losses on other assets like shares or bonds, and speculators, who may be trying to make a profit by influencing market moves.

For more: EU adopts stricter rules on short selling - CBS News

Dutch show no solidarity with EU neighbors in their fight against Wall Street Mafia As Regulator Rules No Need For Short Selling Ban

Based on the available information, there was no need to take further steps against short selling in the Dutch market, the agency said. The matter has been discussed with other securities regulators in Europe and European Securities and Markets Authority, AFM added. 

Since 2009, the Dutch law requires that net short positions exceeding 0.25 percent should be reported, AFM said.

France, Spain, Italy and Belgium announced bans on short selling yesterday, which came into effect today. 

For more: Dutch Regulator Do Not See Need For Short Selling Ban

European Stocks Rise for Second Day as Short-Selling Ban Imposed - by Corinne Gretler

European stocks climbed, extending the Stoxx Europe 600 Index’s rally from a two-year low, as France, Spain, Italy and Belgium imposed short-selling bans.

A separate report showed that U.S. consumer confidence fell further than expected in August. The Thomson Reuters/University of Michigan index of consumer sentiment declined to 54.9. That missed the median estimate of 69 economists for a reading of 62.

For more: European Stocks Rise for Second Day as Short-Selling Ban Imposed - Bloomberg

Euro rebounds as Germany slaps a ban on naked short-selling

The euro rallied to stand at $1.24.1 this evening.
Germany's securities market regulator overnight slapped a ban on naked short-selling in the shares of 10 financial institutions and euro zone government bonds, a move it hoped would put an end to severe fluctuations.

Naked short-selling occurs when investors sell securities they do not own and have not even borrowed, hoping to be able to buy them back later at a lower price, thereby earning a profit. In regular short-selling, the trader borrows the security before selling it.

For more: RTÉ Business: Euro rebounds after hitting four-year low