The EU has concluded an agreement
to limit the practice of short selling

   
(broker-forex.fr) This Tuesday, May 17, the Member States of the European Union have signed an agreement to limit the practice of short selling in Europe. The purpose of this new regulation, which must still be approved by the European Parliament before the summer, is to fight against speculation by Europeans and to impose greater transparency.

Investors will be required to disclose their positions to regulators and they will have to ensure of the availability of securities when they close their positions.

The new European market regulator (ESMA) may prohibit short selling if trade volumes are abnormally high during the day. However, it will need to obtain the consent of the national regulator of the country concerned for sovereign securities.