Politics & Regulation

AFME: short-selling does not need its own rules

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Short-selling presents no greater risk than other approaches to buying and selling securities, and so does not warrant specific rules, according to the Association for Financial Markets in Europe (AFME) in its response to a new European Commission consultation on shorting.

The AFME believes the Commission has identified risks from short-selling that do not exist. Shorting is an established and legitimate trading activity, essential for market-making and accepted by investors and regulators, it argues.

"We agree with many of the European Commission's objectives and believe that disclosure should be made in a way that providers regulators with the information necessary