5 million for violating Regulation SHO, an SEC rule that established a regulatory framework to govern short sales and prevent abusive naked short selling
However, the ban on naked short selling
is to continue.
MEPs voted to set up authorities in London, Paris and Frankfurt to closely monitor regulators and, in emergencies, ban transactions such as naked short selling
of shares and Government bonds.
Spain and Portugal adopted this proposal in May 2010 which in effect extended the obligation to report naked short selling
to all Spanish and Portuguese shares while introducing the adoption of CESR thresholds of 0,2% and 0,5% of an issuer's capital for private and public disclosure
Naked short selling
refers to transactions in which traders sell stocks without borrowing them first.
Market supervisors in the European Union could be given powers to temporarily ban naked short selling
of credit default swaps and shares in times of extreme volatility, the bloc's executive body said on Monday.
I didn't bother to send him back to his work as I got engrossed in a TV programme on a ban imposed by Germany on naked short selling
A new fast-track law in Germany to introduce broad restrictions on naked short selling
will be permanent.
The equity market's nerves were pretty frayed to begin with but their mood worsened last week as the German authorities announced a ban on naked short selling
on a number of key companies and certain fixed interest investments (naked short selling
is the practice of short-selling a financial instrument without first borrowing the security or at least ensuring that the security can be borrowed, as is usually done in a short sale).
On Tuesday night the German financial regulator, Bafin, moved to outlaw so-called naked short selling
and the naked short selling
of Credit Default Swaps (CDS).
Meanwhile, a ban on naked short selling
will continue as stipulated in the Financial Investment Services and Capital Markets Act.
Naked short selling
didn't affect only Overstock, and while it didn't help the ailing economy, it probably didn't kill it.