It is back, the anger on naked short seller. Italy is not happy with the bank stocks falling, so they now start the blame game of the naked short sellers. Could it be Italy’s Economy is in total chaos, while the bunga bunga man is enjoying himself? Whoever responsible, the naked short sellers now need to disclose their positions. We ask ourselves, does anybody care about when these short sellers loose money, when the markets go parabolic?
For those interested in the man who screwed an entire nation (Italy), please read full report on Silvio.
Below from Bloomberg,
Italy’s financial-market watchdog, Consob, is requiring investors who sell equities short to disclose their positions in an effort to increase market transparency.
The measure, which takes effect starting tomorrow, follows similar action take in other European countries, including Germany, Rome-based Consob said in a statement posted on its website.
Consob’s commissioners met today after shares of Italy’s biggest banks fell to the lowest in more than two years on July 8, and government bonds dropped, driving 10-year yields to a nine-year high.
Short selling involves the sale of securities borrowed from the owner, and generates profit when the trader repurchases them at a lower price and returns them to the owner. The amount of shorting is limited by the willingness of owners to lend.
On July 5, European lawmakers voted in favor of a ban on short selling of government bonds in the EU unless traders have at least “located and reserved” in advance the securities they intend to sell. The European Union Parliament in Strasbourg, France, also called for restrictions on traders’ use of credit- default swaps to profit from defaults on sovereign debt they don’t own.
Net Positions
The European Securities and Markets Authority, which co- ordinates the work of national regulators in the 27-nation EU, should be given emergency powers to temporarily ban short selling or trades in CDS on sovereign debt in the EU, the Parliament said.
The Italian regulator said short sellers must disclose their net positions when they reach 0.2 percent or more of a company’s capital and then make additional filings for each additional 0.1 percent.
Politicians including German Chancellor Angela Merkel and French President Nicolas Sarkozyhave claimed that naked short- selling and credit-default swaps worsened the euro area’s sovereign-debt crisis, and have called for EU curbs.
Michel Barnier, the EU’s financial-services chief, said last year such trades may lead to “disorderly markets and systemic risks.” Finance ministers from the 27-nation region agreed in May that traders should be allowed to short sell government bonds and stocks if they have a “reasonable expectation” that they can obtain the underlying securities. They also rejected calls from Germany for a ban on sovereign CDS.
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