GERMANY: BaFin to ban Germany naked short selling

Wednesday May 19 2010

The Federal Financial Supervisory Authority (BaFin) on Tuesday has taken emergency measures for Germany short selling. BaFin has temporarily prohibited uncovered short sales of debt securities of eurozone countries admitted on a domestic exchange to trading on the regular market. It also temporarily prohibited credit default swaps (CDS) in which the reference liability is at least also a liability of a eurozone country and is not used to hedge default risks (uncovered CDS).

These prohibition will apply fro 19 May 2010, 00.00 hrs, to 31 March 2011, 24.00 hrs, and will be reviewed on an on-going basis, according to BaFin, and will be reviewed on an on-going basis, according to BaFin.Click on the above link for more details.