German Short-Selling And The AIFM Directive

Law360, New York (June 2, 2010, 12:53 PM EDT) -- On May 18, 2010, BaFIN, the German financial market regulator, introduced a surprise ban on the naked short-selling of:

- the shares in certain financial sector companies;

- credit default swaps on EU member states who have adopted the euro; and

- debt securities of EU member states who have adopted the euro (regardless of the actual currency of the debt security).

Exemptions are available for companies that act as market makers in the shares or debt securities, or in relation to CDS’s where the CDS...
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