The EU Regulation on Short Selling and Sovereign Credit Default Swaps has now been published, as has the final technical advice. The Regulation creates a harmonised framework for the disclosure of short positions throughout the EU and creates broad powers for the European Securities and Markets Authority to impose emergency restrictions on short selling. It also contains specific provisions to regulate the shorting of sovereign member state obligations. The Regulation will apply from 1 November 2012.
View full memo, "Selling Themselves Short: EU Enacts Regulation Banning Naked Short Sales and Sovereign Debt CDS"