The Committee of European Securities Regulators (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...