Germany drops strictest shorting rules

Author: Elizabeth Fournier - IFLR | Published: 2 Jun 2010

The German government has dropped its plans to ban both currency derivatives for hedging and all equity derivatives that replicate synthetic uncovered short positions.

But the curbs on naked short selling in financial stocks, Eurozone sovereign bonds and credit default swap will remain in place.

In a meeting this morning the German cabinet adopted draft legislation that took a...

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