On 18 October 2011 the European Parliament and the Polish Presidency of the Council of the European Union published a press release on the proposed Regulation on short selling and credit default swaps. The press release explains that agreement has been reached to:
- Introduce a ban on so called “naked” short selling;
- Empower ESMA with the ability to restrict short selling; and
- Increase reporting requirements.
To assist with understanding the implications of the proposed Regulation the Commission has published a set of frequently asked questions on the proposed Regulation.
It is expected that the European Parliament will vote on the proposed Regulation in late 2011 and for it to enter into force in November 2012.
Click here for the European Parliament’s press release.
Click here for the Commission's FAQs.