23/01/2014
In order to adjust the financial stability
EU curb short-selling
The highest court in theEuropean Unionruled that the 28-nation can intervene to curb short-selling operations in certain circumstances refusing British complaint concerning this procedure. According to ' German ' the judgment confirmed the authority of the Securities and the European markets ' ESME ' in 2012 to intervene in the markets of European Union money market to curb short-selling operations in cases of significant financial instability. In short-selling, traders try to make money by betting on an asset value decline and law enforcement in the wake of the financial crisis in the European Union when it was liable to such operations in contributing to a descent of European Bank shares.
But Britain, which has a strong financial sector, has opposed the law and referred the case to the European Court of Justice, London stressed that securities and European markets have too much discretion in matters of a political nature, beyond the measures the EU cannot depend on legislation designed to bring harmony to the Bloc's single market. However, the European Court of Justice rejected the complaint, saying the authorities limited the number of body conditions and criteria, the Court found that the Commission can only restrict activities which threaten the financial markets or the stability of the financial system of the EU and affect other States. In addition, it can only intervene if the national authorities, the Court wrote that the powers available to the precise and adjustable according to judicial review.
