European Commission proposes restrictions on naked short-selling

The European Commission published proposals that would ban naked short-selling of shares throughout the EU. National supervisors would have the authority to implement emergency, temporary bans on short-selling of transactions that translate into the shorting of underlying securities. The commission is not backing a ban on naked credit default swaps on sovereign bonds, as called for by France and Germany. Instead, the commission is seeking proof that naked short-selling of government bonds is harmful.

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