BERLIN (MNI) – The German Finance Ministry is proposing to widen
its ban on short selling of certain assets, according to a discussion
paper seen by Market News International on Tuesday.
The Ministry draft foresees a ban of naked short selling on all
shares of German businesses listed on German exchanges.
Moreover, naked short selling is to be prohibited on all bonds
issued by Eurozone federal, regional or local governments.
The draft also stipulates a prohibition of certain credit default
swaps as well as currency derivatives in euros if there is no hedging
purpose detectable.
In its paper, the ministry proposes to introduce a two-stage system
of transparency for net short selling positions. In the first stage,
Germany’s financial watchdog, Bafin, would be informed. In the second,
short selling positions would be made public.
This applies both to covered short selling positions in stocks as
well as in other financial instruments which are similar to short
selling positions in stocks.
German Finance Minister Wolfgang Schaeuble said last week that the
government cabinet would adopt a short-selling bill on June 2.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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