Since midnight on Thursday 18 September, regulators throughout Europe have taken action in respect of the short-selling of shares in financial companies, as an interim measure to protect the fundamental integrity and quality of markets, and to guard against further instability in the financial sector.
CESR, in its role as a network bringing together EU securities regulators, played an active role in co-ordinating the regulatory actions by its Members in relation to short selling practices.
Regulators in the US, Canada, Australia, India, Taiwan, and Dubai have also taken action in response to the crisis. On a related point, tomorrow the European parliament is expected to vote in favour of proposals made in a report on Hedge funds and private equity which advocates amongst other things greater transparency in relation to:
- general investment strategy and fee policy
- /debt exposure, risk-management system and portfolio valuation methods,
- source and amount of funds raised, including internally
- full transparency of high level executives and senior managers’ remuneration systems, including stock options
- registration and identification of shareholders beyond a certain proportion
- mandatory capital requirements for all financial institutions
- disclosure of leverage/debt exposure, the source and the amount of funds raised
- identification of larger shareholders for all investment products.