BERLIN (Dow Jones) – Following the reinstatement of short selling by the Federal Financial Supervisory Authority (BaFin is to be introduced in the short term a "transparency regime" to allow a rapid response by the BaFin of grievances about the ideas of the black-yellow coalition. (Photo: BaFin)
The reporting requirement for short sales of shares will therefore be extended, as from the Dow Jones Newswires this resolution to the Finance Committee meeting on Wednesday showing in Berlin.
"Is the basis of reports of short positions in shares of the companies involved, the BaFin recognize particular tightening of maladministration or market abuse behavior earlier and more targeted," it says in the complaint. "By improving reporting of short positions are also the integrity of the financial market," it states. Thus market participants and issuers could respond appropriately to them known Leerverkaufsaktivitäten.
The Finance Committee referred to the short-term planned by the BaFin introduction of a transparency regime for short positions in shares of important companies in the financial industry as "necessary." Even if the crisis in financial markets in recent months as a result of the recovery of the economic situation was not as pronounced as in the autumn of 2008, the Financial Supervisory Authority must continue to be in a position to advance to a further aggravation of the situation in financial markets and act quickly to drastic measures.
The introduction of a transparency regime for short selling, with appropriate reporting requirements of the BaFin, the information base to carry out their oversight function would be improved. Since February in Germany Leerverkaufsgeschäfte allowed again after they were previously prohibited a half years.
A blanket ban on short selling rejects the black-yellow coalition, but will prevent sprawls. The fiscal policy spokesman of the CDU-CSU parliamentary group, Leo Dautzenberg, told Dow Jones Newswires, a "free way for gamers" by shorting it should not be. "Therefore, the BaFin will monitor not only the development of the markets, but to adopt greater transparency requirements," said Dautzenberg.
It was necessary also an internationally coordinated approach to selling. Evasive movements by a tax differential to be avoided at all costs. In particular, purely speculative in need of sharp analysis. "Because in the end can lead to more sell orders than real, existing shares outstanding and thus the price of a stock falls under massive pressure," said Dautzenberg.
-By Andrea Thomas and Beatrice Preuschoff, Dow Jones Newswires
+49 (0) 30 – 2888 4126, berlin.de @ dowjones.com
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