NEWS
Germany’s Finance Committee in Parliament Waters Down ‘Naked’ Short Selling Ban
Wall Street Journal correspondent Andrea Thomas reports (“German Short-Selling Ban Watered Down,” June 28) that “Germany’s parliamentary finance committee on Monday watered down a controversial bill banning ‘naked’ short selling of all stocks and euro-currency derivatives that aren’t intended for hedging against currency risks.”
The Finance Ministry could not implement a ban by decree during a crisis and intraday short selling would be exempt under the committee-approved draft. “Germany’s financial-sector regulator, BaFin, can ban such financial transactions for up to one year, but the lower house must be consulted before it can be extended, the Parliament’s new department said in a statement.”
