UK’s IMA concerned about ESMA advice on short selling
The Investment Management Association, the trade body for the UK’s £4trn asset management industry, has expressed concern at draft technical advice offered by the European Securities and Markets Association (ESMA) on the regulation of short selling.
IMA Director of Wholesale Guy Sears, said: “Our member firms strongly support having a consistent definition and approach to short selling across the EU.
“However ESMA’s advice to the EU Commission appears to contradict the original regulation on hedging across national boundaries by proposing limits. This would be against investors’ interest and could run the risk of increasing the cost of investment in EU economies.
“We are also concerned that the consultation process has had to be very rushed; no-one wants this important work to result in sub-standard legislation.”
ESMA has published a consultation paper entitled “Draft technical advice on possible Delegated Acts concerning the regulation on short selling and certain aspects of credit default swaps.”