EU securities regulators are closely monitoring the functioning of the markets under the current circumstances and are considering together, possible actions which might be taken to contribute to orderly functioning markets. Any such actions will be taken with a view to strengthening confidence in financial markets and protecting investors.
Particularly, CESR, in its role as a network bringing together EU securities regulators, has been coordinating actions by its Members regarding the short selling practices, in particular in financial companies. Some EU securities regulators have adopted, or are in a process of taking, actions in their respective markets either to limit, or to introduce stringent requirements or further reporting obligations by firms to supervisory authorities on short-selling. Other Members are currently considering whether additional requirements to the ones already existing would be necessary, taking into account the evolving market conditions and the characteristics of their particular domestic market.
More generally, CESR Members have strengthened monitoring of financial markets, with a view to combat possible market abuse behaviour and other practices that may disturb the orderly functioning of financial markets. The actions by the EU securities regulators will lead to intensified enforcement against any possible abusive practices.
As part of its regular reporting to the EU institutions, CESR had already conducted a survey with a view to inform the ECOFIN Council about existing requirements and/or restrictions on short selling available in the individual Member States.
