Short of the mark

SHORT OF THE MARK

Why the EC has got it wrong with its short selling rules.

The European Commission yesterday waded into the short selling debate – some would say out of its depth - by publishing EU-wide proposals to monitor short selling. Its plans, still subject to discussion, tread a fine line between monitoring and controlling the activity. But, what finally emerges from the EU sausage machine increasingly matters to passengers on the Clapham omnibus, as retail Ucits hedge funds grow in popularity. The EC says short sellers should tell regulators when they use 0.2% or more of a company’s shares, and reveal shorts publicly at 0.5%. Exchanges should flag...