Short selling will be subject to supervision

Short selling will be subject to supervision

The European Parliament recently passed a of financial supervision new bill , clarks shoes sale  which means that Europe's financial regulatory system is about to experience an unprecedented major reforms. Under the new bill, four new institutions will be established , respectively, from the macro , micro level of the European financial markets supervision. in Europe Debt crisis because of speculators short selling operation substantial losses for of the European countries and work hard to short selling as the new Act control the focus of . Gucci Womens Shoes The passage of the bill for the in Europe new financial regulatory system next year, in January implementation paving the way for .
New regulation bill Breakthrough in the
According to statistics, during the financial crisis , EU governments provide financial institutions with financial support from accounted for the EU GDP 16.5% of . experienced by The The debt crisis in Europe banking sector is still struggling , Bloomberg data show that in Europe major banks and financial institutions were held in Greece, Portugal and Spain five European countries 134 billion euros of sovereign bonds. Financial crisis, the EU began to reflect , after several months of research , negotiations, financial supervision and the new bill,MiuMiu Handbags the financial crisis, the EU's most important reform measures the final breakthrough impede , breakthrough.
Under the new law , the EU will set up the European Bank Authority, the European Securities and the Market Authority , the European Insurance and Occupational Pension Authority, from the micro-level respectively, is responsible for banking, securities and insurance industry regulation. And at the macro level, the EU will set up a mainly members of Central Bank composed of the European systemic risk committee to monitor the entire EU financial markets may be macro risk , timely early warning and , where necessary, recommendations should be taken Measures.
Short selling will be significantly limited
At present, because regulators can not inter- sovereign exercise the regulatory powers of , and no ban short-selling operation permission to , which makes the existing system supervision and effective is limited. the new regulation bill After the implementation of , it means that the EU level of financial supervision and risk prevention system and breaking the member fragmented current regulatory structure . the new regulation The bill requires that on the market of short selling must be transparent , and these include the adoption of financial derivatives to achieve the short selling , on the other hand , the new bill will restrict naked short selling , control high-risk naked to sell Air exposure.
Glasgow University professor of finance Keane said that in normal circumstances, short selling is conducive to of assets rational pricing , improve market liquidity. But it is worth noting that the market downturn , short selling will be enlarged fell , to the market a huge systemic risk. Analysts believe that the naked short selling , since seller original there is no physical , to sell does not exist the stock , its trading volume may be extremely large , mbt shoes on sale it will stock prices cause severe impact on . The need to from the market re- purchase in kind, naked short selling may lead to difficult to buy the kind of risk.
For risk control considerations, Germany has this year in May banned naked short selling . The under the EU financial regulation new law , investors during the bare sold ever must be license with third parties agreements to set aside full margin , you are guaranteed even in the forced liquidation case of is still of funds deposit more than to control the Risk is not to the market passed .
In addition, short selling now the main use of over the counter , statistics of these acts the lack of reliable and comprehensive information support, which to some extent hindered the market participants and regulators understand the risks. In order to better monitor changes in risk , the new bill also requires the OTC transparency in must be existing basis on the a substantial increase , once off transactions involving short selling , will be focus of attention. In addition, if a financial product prices in the day fell sharply , regulatory agencies have the right to temporarily restrict short selling .
Analysts believe that the financial crisis has exposed the EU financial regulation fragmented shortcomings of to make it in the financial crisis, face of there is no uniform coping effective means of with the new law came into being in the pan-European financial supervision system will exceed the EU Member States Territorial boundaries,  clarks womens shoesand has an unprecedented regulatory authority.