As the Commission rightly points out, short selling plays a positive and important role in financial markets. More than enough evidence exists to prove that the possibly speculative actions that have recently triggered local restrictions have primarily been conducted using instruments that were not admitted to trading on Regulated Markets but that were traded OTC. We understand the rationale behind the measures taken by the authorities as extreme market conditions triggered extreme responses to seek to restore confidence in the markets. However, notwithstanding the laudable intentions, the restrictions imposed by several authorities in the EU have been both discriminatory and ineffective. To avoid similar situations in the future, we support a strong coordinating role to be given to ESMA to ensure that a consistent approach is taken by the relevant Competent Authorities (CAs) across all venues trading the same product.
FTSE Mondo Visione Exchanges Index:
FESE Response To The European Commission On Short Selling
Date 12/07/2010
