Insight: UK position on EU short selling and CDS curbs
Friday 1 April 2011 - by Will Henley
Influential MEP Syed Kamall was joined by representatives of the UK Financial Services Authority and Alternative Investment Management Association at a special seminar in London.
"It is a pretty difficult one to call," Treip said. "There are some significant divergences between the two institutions and I am genuinely unable to call where some of those are going to come out."
"We are somewhere between hopeful and confident that the overall outcome will be one that is good for the markets."
As the policymaker alluded, the UK, home to some 80 per cent of European hedge funds, is at odds with many of its continental cousins over planned restrictions to constrain risky behaviour.
Evidently pleased that Brussels has given up on the idea of a permanent ban on short selling, Treip said however that he was "not convinced" that the remaining package is proportionate to the risks posed by the investment practice.
He explained that the FSA was also not persuaded of the need to curb covered short selling, and added that an idea to extend equity short selling restrictions to sovereign debt positions was unwelcome.
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