BERLIN (MNI) – As of midnight tonight, Germany’s financial watchdog
Bafin will forbid uncovered short-selling of shares and bonds, a
government coalition source confirmed Tuesday.
The ban will be introduced via a directive by the Bafin and will
not be limited in time. However, the government intends to include the
ban in a package bill on financial market regulation soon, the source
said.
Chancellor Angela Merkel is expected to confirm the ban formally in
a declaration to Parliament on Wednesday.
The move can be seen as a response to demands from parliamentarians
for rapid action on financial regulation ahead of the key vote Friday on
Germany’s participation in the EU fiscal rescue package.
–Berlin bureau: +49 30 2262 0580; email: twidder@marketnews.com
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