The European Commission has unveiled proposals to restrict or prohibit short-selling as well as tighten controls on derivatives. "No financial market can afford to remain a Wild West territory," said Michel Barnier, internal-market commissioner for the EU. "We have to limit risks of hyper-speculation." However, AFME said requiring central clearing of derivatives could "introduce disproportionate costs or reduce their effectiveness as risk-management tools" because most are developed specifically for particular users to hedge risks.

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