EU Commission proposal expected by summer’s end on potential risks arising from short selling and credit default swaps
Many countries took different measures during the financial crisis regarding naked short selling and naked credit default swaps (CDS). The EU Com-mission wishes to harmonise those measures, and to reduce systemic risks, risks to financial stability and market integrity arising from short selling and CDS. It also wants to create more transparency about who is holding such short positions.
The EU Commission held a consultation for market participants, national regulators and other stake-holders in July. This consultation should result in a proposal for legislation from the EU Commission by summer’s end.
Click here to view the press release.