Regulation on short selling and certain aspects of credit default swaps, January 2012
As a result of the financial crisis 2008, a number of EU member states adopted emergency measures to restrict or ban short selling in some or all securities. As a result, different measures were adopted across the EU. In order to harmonise the rules, the European Commission adopted a proposal in September 2010 for a regulation on short selling and certain aspects of credit default swaps (CDS). The main objectives of the proposal are to create a harmonised framework for coordinated action at the European level, to increase transparency and to reduce risks. The Commission states that the new framework will result in regulators – both national and European – having clear powers to act when necessary, while preventing market fragmentation and ensuring the smooth functioning of the internal market.