Friday, August 12, 2011
The EU's market regulator bans short selling to stem trading in rumours
The European Securities and Markets Authority has banned short selling in Belgium, France, Italy and Spain.
The move comes after unsubstantiated rumours about the health of French banks saw heavy selling in French banks such as Societe Generale.
THE ESMA says it will take a firm stance against any traders found to be spreading rumours that add to an already volatile market.