Global Financial Strategy

Search the site   >>Advanced search
First for financial regulatory news and views
HOME   |   REGISTER   |   SUBSCRIBE   |   NEWS   |   ANALYSIS   |   INTERVIEWS & FEATURES   |   EVENTS   |   MUTTERS   |   JOBS   |   MY ACCOUNT
EUROPE   |    US & CANADA   |    ASIA PACIFIC   |    MIDDLE EAST & AFRICA   |    LATIN AMERICA & CARIBBEAN   |    OFFSHORE   |    SINGAPORE   |    HONG KONG
TRADING   |    CASINO MARKET   |    BANKING   |    INSURANCE   |    FINANCIAL REPORTING   |    TAXATION   |    MACROECONOMIC   |    PROFILES   |   CONTACT   |   
  • MF Global spoke of 'strong' finances
  • EC: No corp gov powers for ESAs
  • FSA appoints senior investment bank adviser
  • GFS has now closed
  • Czechs join UK on fiscal compact sidelines
  • Davos stalemate on EU's IMF funds
  • Tucker: Resolution regime 'top priority'
  • Saudi Arabia increases central bank role
  • FSB urges Canada for one securities regulator
  • CFTC set for committee to scrutinise HFT
  • Fitch downgrades Belgian banks
  • What corruption really costs
  • UK FSA pushes for Mifid II rethink on OTCs
  • Shanghai boosts global financial status
  • Canada aligns credit rating rules with EU
  • Bowles blasts lack of women at ECB
  • Sarkozy to introduce French FTT in August
  • Barnier warns on further bonus reforms
GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed
You must be logged in to use this function.


Esma rebuke on short selling regulation

Tuesday 29 November 2011 – by [email protected]


The chairman of the European securities watchdog has expressed frustration at the short space of time given over to write technical standards for the EU short selling regulation, which was approved by parliamentarians earlier this month.

Steven Maijoor suggested in Brussels on Tuesday that curtailing the ideal time for the European Securities and Markets Authority to draft detailed guidelines on the regulation by around eight months would harm its “quality”.

“The quality of technical standards is crucial for the proper implementation of directives and standards. Esma has made clear that on average it takes about 12 months to accomplish all steps required for good technical standards.

“A shorter period negatively affects, for example, the possibility to consult with stakeholders like you. In that perspective it is very unfortunate that the recently agreed short selling regulation requires us to deliver technical standards by the end of March 2012,” Maijoor added at the European Fund and Asset Management Association conference.

The EU Parliament voted through the regulation to curb short selling and trading in credit default swaps on 13 November, a law pushed by the European Commission in a bid to tackle volatility in the financial markets, pending approval from the European Council. It is scheduled to become law by November 2012.

The original draft regulation put forward by MEPs included a requirement that naked short sales be converted to a normal short sale within a single trading day – known as a “locate and reserve rule”. It asked that a trader guarantee that it can borrow the shares.

Related articles:
MEPs approve credit default swaps ban
EU clinches short selling and CDS deal
Stretched Esma says consultation to suffer
EP piles on pressure for short selling ban
11th hour plea on short selling and CDS


The final rule merely requires that the trader has a “reasonable expectation” of being able to borrow the shares from the other party. However Esma is charged with determining what may be deemed “reasonable” in its technical guidance.

In his speech, Maijoor also sought to reassure firms that new powers given to Esma under the revised Markets in Financial Instruments regime – to ban certain risky products or activities – would be used only sparingly.

“Our intervention would be limited to certain specific circumstances and a condition for Esma to step in would be that national authorities have not taken any action to address the threat,” he said.


Article pages: |   1  |  2  |



WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.
Login Register Most read Most commented
Username

Password

>> Forgotten your password?
>> Sign Up  

GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

  • Diamond warns against ‘Balkanisation’
  • ABI: UK insurers must keep EU links
  • EU Parliament site hit by hacktivists
  • George Soros: New year, same crisis
  • FSB: Swiss regulator needs more teeth
  • OCC: Deriv fears are an overreaction
  • ‘Major wave’ of Solvency II drafts in May
  • IMF paper urges Aus bank capital boost
  • BoE: Limit bonuses to boost bank capital
  • 2012 vision: Increased regulatory exposure looms
  • Barnier offers hope to NYSE/Boerse
  • Esma rushes short selling consultation
  • Bowles re-elected as Econ chair
  • Hoogervorst hints at accounting slowdown
  • Asia in the year of the dragon
  • Barnier: FTT will not be forced on UK
INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don’t know

View results

FIND A REGION world regions
 
Global Financial Strategy - [email protected] | Home | Legal | Contact design by SDV