This update was first published in the April 2012 International edition of Accounting and Business magazine
A European Union (EU) regulation mandating common transparency requirements for short selling and certain credit default swaps has now been formally approved by the EU Council of Ministers. The aim is to harmonise controls over such trades in times of crisis to ensure that deals cannot be channelled through the member state with the weakest rules on disclosure.
For instance, significant net short positions regarding sovereign debt issued in the EU would have to be revealed privately to regulators. The regulation was negotiated between ministers and the European Parliament before Christmas.
Keith Nuthall, journalist