The European Commission has launched a consultation on short-selling, the final step before the body makes legislative proposals in September. This comes against a backdrop of fragmented approaches to short selling by member states.

In a consultation paper sent out today, the Commission, led by Michel Barnier, is seeking to consult market participants, regulators and other stakeholders on possible provisions for legislation. It intends to focus the consultation on five key areas: scope, transparency, uncovered short sales, exemptions and emergency powers of competent authorities.