In the introductory part, FESE comments on the initiatives taken by several authorities around the globe seeking to restore confidence in the markets by restricting short-selling and note that, notwithstanding the laudable intentions, the restrictions imposed by several authorities in the EU have been both discriminatory and ineffective. FESE also comments on the IOSCO’s four principles by saying, among other things, that a robust discipline for settlement of short sales would increase the efficiency of our markets and address potential settlement drawbacks and that enhanced and meaningful reporting of short-selling (e.g. volumes and open positions) could be beneficial if transparency measures are well thought through and proportionate.
FESE Response to IOSCO Consultation on short selling_4MAY09.pdf