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Forumer storico
(Reuters) - European Union states have<br>failed to agree on how to regulate shortselling of derivative<br>debt insurance contracts that some blamed for worsening the<br>region's sovereign debt crisis, an EU diplomat said.<br>Ambassadors met on Wednesday to thrash out agreement finance ministers to endorse next Tuesday, but due to splits there will only be a progress report.<br>"There is no basis at this
stage for an agreement," the<br>diplomat said.<br>Italy, Britain and
the Netherlands said curbing "naked"<br>selling of credit
default swaps linked to sovereign debt could<br>bump up funding costs
for governments, the diplomat said.<br>Some policymakers blamed naked
shortselling of sovereign CDS<br>contracts, whereby the buyers does
not own any of the underlying<br>government bonds being insured
against price falls, for<br>worsening the euro zone debt crisis in
Greece and elsewhere.<br>The draft law, authored by Michel Barnier,
the bloc's financial services commissioner, introduces transparency requirements
for naked CDS selling and on shorting stocks.<br>The European
Parliament has joint say with EU states on the<br>measure, and its
economic affairs committee voted on Monday to<br>toughen up the draft
and effectively ban naked CDS selling on a<br>permanent basis in many
cases.Barnier had proposed giving regulators powers to intervene<br>with a temporary halts if markets become disorderly and on Tuesday urged a speedy joint deal.
Several countries signalled they want references to<br>sovereign CDS trading
removed from the draft measure.<br>"Italy's message was that the inclusion of sovereign debt in<br>the scope of this provision would have the effect of making<br>national debt more expensive. Britain maintained the same<br>position," the diplomat said.<br>Britain flagged a possible compromise, saying that a ban<br>could apply to CDS on sovereign debt if the country involved<br>allowed this, but this was seen as being too legally tricky.<br>There was also debate on whether regulators should first<br>obtain permission from finance
ministers before introducing<br>temporary bans on naked CDS selling or
shorting of shares.
stage for an agreement," the<br>diplomat said.<br>Italy, Britain and
the Netherlands said curbing "naked"<br>selling of credit
default swaps linked to sovereign debt could<br>bump up funding costs
for governments, the diplomat said.<br>Some policymakers blamed naked
shortselling of sovereign CDS<br>contracts, whereby the buyers does
not own any of the underlying<br>government bonds being insured
against price falls, for<br>worsening the euro zone debt crisis in
Greece and elsewhere.<br>The draft law, authored by Michel Barnier,
the bloc's financial services commissioner, introduces transparency requirements
for naked CDS selling and on shorting stocks.<br>The European
Parliament has joint say with EU states on the<br>measure, and its
economic affairs committee voted on Monday to<br>toughen up the draft
and effectively ban naked CDS selling on a<br>permanent basis in many
cases.Barnier had proposed giving regulators powers to intervene<br>with a temporary halts if markets become disorderly and on Tuesday urged a speedy joint deal.
Several countries signalled they want references to<br>sovereign CDS trading
removed from the draft measure.<br>"Italy's message was that the inclusion of sovereign debt in<br>the scope of this provision would have the effect of making<br>national debt more expensive. Britain maintained the same<br>position," the diplomat said.<br>Britain flagged a possible compromise, saying that a ban<br>could apply to CDS on sovereign debt if the country involved<br>allowed this, but this was seen as being too legally tricky.<br>There was also debate on whether regulators should first<br>obtain permission from finance
ministers before introducing<br>temporary bans on naked CDS selling or
shorting of shares.
