naked short selling

A disappointing auction of government debt has followed Germany’s decision to implement a partial ban on naked short-selling of certain stocks. A €6bn offer attracted just €6.42bn bids.

The German action against naked shorting—selling securities such as shares and bonds that are not owned or borrowed—comes amid heated discussion in Europe of regulatory curbs on speculative trading, which has been widely blamed by politicians for exacerbating the Greek debt crisis. Read more