Politics & Regulation

ISLA urges EC to harmonise short-selling rules

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The International Securities Lending Association (ISLA) is urging consistent and proportionate regulation for short-selling, in response to a current European Commission consultation exercise.

The EC is consulting on measures that enable authorities to restrict or ban short-selling temporarily in emergency situations, increase transparency to regulators and the market about short-selling positions and reduce settlement risks of uncovered or naked short-selling.

ISLA said it believes short-selling is a legitimate and important investment activity, which enhances price discovery, counteracts supply/demand imbalances and also provides liquidity to the market.

While in agreement with the EC's desire to see consistent regulations across Europe, ISLA