A Greek former European Commissioner has accused the country’s central bank of encouraging naked short-selling of Greek bonds by altering the regulations on its electronic bond trading platform last year. Vasso Papandreou, a senior deputy in the governing socialist party, made the charges on Wednesday in a written question to parliament.
The six-page question addressed to Mr Papaconstantinou set out details of measures taken by the central bank last year that appeared to facilitate naked shorting. First, the HDAT bond settlement period was extended from t+3 to t+10. Second, the central bank abolished penalties for investors who did not deliver a bond on the settlement date, in a move that allowed failed transactions to be continuously recycled. Read more