European quartet bans short selling

France, Italy, Spain and Belgium banned all short selling of financial stocks for 15 days on the 11 August 2011 in response to sharp share price falls earlier in the week, but they failed to convince other regulators to go along with a European Union-wide prohibition.

The announcement was seen to represent a partial victory for the new European Union market regulator, Esma, which had sought to avoid a repeat of the unco-ordinated actions that swept around the world after the 2008 collapse of Lehman Brothers.

During the 12 August 2011 Germany also called for the complete prohibition of short selling.

ESO: Background information: European Securities and Markets Authority (ESMA) http://www.europeansources.info/record/website-european-securities-and-markets-authority-esma/

ESO: Background information: Focus of eurozone crisis turns to France http://www.europeansources.info/record/sarkozy-gives-ministers-debt-deadline-focus-of-eurozone-crisis-turns-to-france/

ESO: Background information: Swiss central bank considers euro peg http://www.europeansources.info/record/swiss-central-bank-considers-euro-peg/

BBC News, 12.8.11: Four EU nations ban short-selling on banking stocks http://www.bbc.co.uk/news/business-14500731

ESO: Background information: EU talks over German short-selling ban http://www.europeansources.info/record/eu-talks-over-german-short-selling-ban/

EurActiv, 12.8.11: Four EU countries curb short-selling http://www.euractiv.com/en/euro-finance/eu-countries-curb-short-selling-news-506980

France24, 12.8.11: Four European countries ban short-selling stocks http://www.france24.com/en/20110812-four-european-countries-france-italy-belgium-spain-ban-short-selling-financial-stocks

ESMA: Statement, 11.8.11: ESMA promotes harmonised regulatory action on short-selling in the EU http://www.esma.europa.eu/system/files/ESMA_2011_266___Public_statement_on_short_selling.pdf

EUObserver, 12.8.11: Four EU states ban short-selling to curb financial turmoil http://euobserver.com/19/113297

La Vanguardia, 12.8.11: Europe reacts (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/855061-europe-reacts

France24, 12.8.11: Germany calls for European ban on short-selling http://www.france24.com/en/20110812-germany-calls-europe-wide-ban-short-selling-stocks-markets-debt-crisis

Deutsche Welle, 12.8.11: Germany calls for Europe-wide short-selling ban http://www.dw-world.de/dw/article/0,,15312312,00.html

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