Rejected: A Europe-Wide Short Selling Ban "Does Not Look Likely"
Following the NYT debacle in which it announced there was a debt deal when there was anything but (in the process however sending stocks surging on nothing but what was proven to be a lie), today it appears the NYT may have gone for the double, after first reporting earlier that Europe is about to proceed with a short-selling ban. As of minutes ago, Reuters has reported that a short-selling ban "does not look likely" according to a regulatory source. In other words we are back to the yes bailout/no bailout that marked the European days of June and July, when the leakers merely gauged the market response to determine if the rumor should become policy. It seems that after having achieved the sought after (brief) market bounce on forced short covering, Europe has decided not to go ahead and impose a ban after all... At least until tomorrow's next -5% plunge in Italian and French bank stocks.
European Union states are unlikely to impose a blanket ban on short-selling of stocks in response to volatile trading in bank stocks, a regulatory source familiar with the situation told Reuters.
"A Europe-wide short-selling ban doesn't look likely," the source said on Thursday.
Earlier ESMA, the European Union's financial market regulator, said it was monitoring the bank share volatility closely and was in touch with national regulators.
There has been speculation that a bloc-wide ban could be imposed since Greece banned short-selling for a period of two months earlier this week.
And moments later Italy's market regulator CONSOB added that there is no change to its short selling policy. Which of course does not mean anything.
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