EU Council Statement: Council agrees general approach on short selling and credit default swaps

( May 17, 2011, 13:37 GMT | Official Statement) -- MLex Summary: European Union finance ministers backed restrictions and reporting rules for short sales and credit default swaps (CDS) on government bonds, setting up talks with the European Parliament on the final form of the legislation. The bill mandates short-sellers to ensure they can obtain the related securities before settlement, with an exemption for hedging. Authorities can ban shorting in times of turmoil, and suspend such restraints on CDS if bond markets dry up. The European Securities and Markets Authority could intervene in cross-border situations, but actions on sovereign debt would need approval the member-state of interest.The full text of the press release follows. The statement in original format is attached at bottom....

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EU Council Statement: Council agrees general approach on short selling and credit default swaps

Prepare for tomorrow’s regulatory change, today

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