Europese Raad keurt nieuwe wetgeving rond ongedekte effectenhandel goed (en)

Today, economic and finance ministers have agreed to a general approach in the short selling regulation on the basis of the Presidency’s compromise proposal. Chair of the ECOFIN i council, Minister György Matolcsy said: „The presidency compromise strikes the right balance between the need to restrict abusive market practices and safeguard liquidity in sovereign debt markets. At the same time, the compromise delivers on the key objectives of transparency, a permanent ban on naked short selling and the reinforcement of supervisory authorities. On this basis we can engage the Parliament to reach a first reading agreement.”

The March ECOFIN council identified as outstanding issues the impact on market liquidity of the proposed restrictions on the naked short selling of sovereign debt, as well as the powers to be given to the European Securities and Markets Authority, ESMA. In order to address the concerns about liquidity, the Presidency has proposed a safeguard clause meaning that if national authorities experience a significant drop in sovereign debt liquidity they can temporarily suspend the permanent ban on uncovered short sale of sovereign debt. As regards ESMA, while there was broad support for the compromise text, the Council and the Commission have committed themselves to take into account the concerns raised by some Member States, in the negotiations with the European Parliament.

Background

Following calls by heads of State and Government to rein in abusive market practises widely seen as having contributed to the deepening of the financial crisis, the Commission produced in September 2010 a proposal to harmonise requirements relating to short selling across the European Union. The ECON committee of the European Parliament voted on 7 March on its report but postponed its Plenary vote until June 2011 in order to allow the Council to agree on its general approach and to start the negotiations between the institutions.  

In March the ECOFIN council decided to review the dossier further with a view to an agreement in May. Building on months of intensive work, the compromise achieved in the Council today gives the Presidency a mandate to conduct negotiations with the Parliament and possibly paves the way for a first reading agreement. 

For further information, please contact Márton Hajdú (+32 491 355 457) Presidency spokesperson at press.beu@kum.hu