European Parliament Adopts Proposal for Regulation on Short Selling and Credit Default Swaps
November 15, 2011
The European Parliament has adopted a proposal for a regulation on short selling and credit default swaps.
Key points of the proposal include restrictions on entering into naked CDS whose underlying relates to sovereign debt, recordkeeping requirements for holders of significant net short positions, and the obligation to report net short positions constituting to 0.5% or more of an issuer's issued share capital
The resolution will now be considered by the Council of Ministers.