ESME has published a paper on short selling.
The European Securities Markets Expert Group (ESME) has produced an analysis of various measures taken regarding short selling. ESME emphasizes that there is no statistical evidence on the effectiveness of the recent measures. It also notes extreme uncertainty in the markets and high costs that are the result of the lack of international coordination on these measures. Its conclusion is that short selling should only be restricted in exceptional circumstances and as a short term response to a specific event.
IOSCO consults on short selling
IOSCO considers that short selling plays an important role in the market and offers certain advantages. However, short selling can also contribute to market distortion. IOSCO has therefore drawn up four basic principles for regulation regarding short selling in order to reduce risks without adversely affecting the advantages of short selling. Responses can be sent to IOSCO until 4 May.