On March 2 2010, the Committee of European Securities
Regulators (Cesr) published its proposed model for a
pan-European short selling regime, which is based closely upon
the proposals it issued for consultation in July 2009.
The practice of short selling, whereby a investor agrees to
sell shares it does not own, has come under the spotlight
during the financial crisis. During the period of extreme
market volatility in the aftermath of the Lehman Brothers
collapse, many national regulators, including in the US and the
UK, imposed bans on the short selling of shares in financial
sector companies. Although most of these bans have now been
lifted, many jurisdictions have introduced requirements for
disclosure of short sales or short positions either
publicly or privately to the relevant regulator. To date, there
has been no co-ordinated approach within the EU, leaving
decisions to be taken entirely at national level.