The Committee of European Securities Regulator’s (Cesr) plans for a pan-European short-selling disclosure regime will help establish a level-playing field, but national discrepancies could still occur.
“To the extent that national regulators impose extra requirements there could still be regulatory arbitrage,” said Peter Green, partner at Morrison & Foerster in London. “However, most shares will be listed in the domestic market of the issuer so international arbitrage opportunities are likely to be limited.”
As predicted by IFLR in late February, Cesr has now released its recommendations for how net short positions in stocks must be disclosed across Europe. The proposals...