Politics & Regulation

Trade bodies raise concerns over planned EU short-selling regulations


The International Securities Lending Association and the Alternative Investment Management Association have independently expressed concern about the proposed short-selling disclosure regulations announced by the European Commission today (15 September).

Under the tougher rules, managers would be required to notify authorities of any short position exceeding 0.2% of issued capital, and to inform the market of positions exceeding 0.5%. But ISLA believes this is too stringent and would threaten market efficiency.

ISLA supports transparency measures that create disclosure symmetries with long positions, including private disclosure to regulators and anonymised reporting of aggregate positions, but it argues that the 0.5% threshold for