EUROPE: Council Publishes Final Regulation on EU Short Selling

Wednesday March 28 2012

Further to the update of 22 February, the final draft of the EU Regulation on EU Short Selling and certain aspects of Credit Default Swaps has been published. The regulation introduces common EU disclosure requirements and harmonises the powers that regulators may use in exceptional situations where there is a serious threat to financial stability. The regulation, which also had to be agreed by the European Parliament, covers all types of financial instrument, but given the potential risks posed by EU short selling; this form of trading is a central element to be governed by the new rules. It also introduces common EU disclosure requirements and harmonises the powers that regulators may use in exceptional situations where there is a serious threat to financial stability. The Regulation will become directly applicable throughout the EU on 1 November 2012. Uncovered sovereign CDS transactions which were concluded before 25 March 2012 are grandfathered and may be held until the maturity date of the contract.

Click on the above link for more details.