Asset managers decry 'purely political' short-selling ban

Brokers and asset managers lament that European politicians are not listening to evidence that shows a ban on naked short-selling CDS is actually harmful

Asset managers and brokers have reacted against the “purely political” imposition of a ban on naked shorting of European Union sovereign government bonds and stocks, which is expected to come into law following a late-night agreement between the European Parliament and representatives of EU member states.

Naked short-selling is carried out when an investor uses a credit default swap to make a bet against a financial product, such as sovereign bond, without holding the underlying asset itself.

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