SBAI » Short Selling

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Short Selling

The role of short selling has been an area of focus following the financial crisis (mostly in Europe). The SBAI has constructively engaged in this discussion, highlighting the beneficial role short selling plays in the price formation in markets.

In 2020, discussions about short selling have resurfaced in the context of the short selling restrictions imposed in a small number of jurisdictions (see overview of short selling reporting and restrictions in table below).

In January 2021, questions about short selling have again come to the forefront in the context of the “GameStop” market volatility. The SBAI has reiterated its position in this memo.

 Regulatory Alert The global outbreak of COVID-19 caused the recent market turmoil and prompted a small number of regulators to impose short-selling restrictions

European Securities and Markets Authority (ESMA) European Securities and Markets Authority ‘s Consultation on regulating short selling (02/2012)

European Commission Proposal on regulating short selling (09/2010)

Committee of European Securities Regulator (CESR) Committee of European Securities Regulator’s Consultation on

UK Financial Services Authority (FSA) FSA Consultation (DP 09/01) on Short Selling (05/2009)

International Organization of Securities Commissions (IOSCO)