MPs call for ‘naked short selling’ ban

A majority of MPs has called on the government to follow Germany and introduce a ban on the form of speculative share trading known as ‘naked short selling’.


Naked short selling is the practice of selling shares without owning them, borrowing them, or ensuring that they can be borrowed in the future.
Earlier this week, the Dutch financial services regulator AFM said it did not support a ban. Nor does acting finance minister Jan Kees de Jager.
Prime minister Jan Peter Balkenende told his weekly news conference the government still favoured international cooperation over unilateral action. ‘We have to be careful that individual measures do not work counterproductively,’ the Financial Times reported him as saying.
Labour Paul Tang told the FT the government could theoretically ignore the vote but now has to come up with proposals, with a European-wide ban the favoured course of action.

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