The U.K. is mulling legal action to prevent a European Union proposal to give European Securities and Markets Authority (Esma) the right to ban the short-selling of shares and other securities, Financial News reports. The U.K maintains that Article 24 of the proposed legislation, which authorizes Esma to ban the shorting of securities, equities included, would be “unlawful”.
The European Council, European Parliament and European Commission are currently discussing the short-selling legislation. Derivatives trading is covered separately and will not come under the proposed ban.
Click here for the story from Financial News.