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Article (81/421)
Short Selling Regulation
Short Selling Regulation
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Short Selling Regulation

01/02/2017

Our regulatory memo explaining the short selling regulation: what it is, its scope, key dates and how it will impact you

The regulation on short selling and certain aspects of credit default swaps (SSR) targets the risks linked to these transactions (notably settlement risk and the risk of price spirals) and introduces a harmonised European framework to avoid regulatory arbitrage and ensure coordination between regulators.

More concretely, its main objectives are to:

  • Provide tools to prevent speculation on companies and sovereign debt
  • Increase transparency on short positions held by investors of European securities
  • Reduce risks posed by naked CDS positions and affecting the stability of sovereign debt markets
  • Reduce settlement risk and other risks linked with naked short selling
  • Provide member states with legal instruments to intervene in exceptional situations, for instance by imposing temporary bans on short selling
  • Ensure better coordination between member states and ESMA in case of stressed situations


Download the regulatory memo:

img_bp2s_re_memo_short_selling_20170206.jpg

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