Many European Union member states are opposing a permanent ban wanted by lawmakers on the sale of some derivatives, Reuters reports. Italy, the U.K., Sweden, the Netherlands, Spain along with other nations believe a permanent ban on uncovered sovereign credit default swaps (CDS) will affect trading in underlying government bonds.

The proposal will limit short-selling of shares and sovereign debt and require investors to disclose their short positions above a certain threshold to regulators, adds The Wall Street Journal. France, Germany and Luxembourg are among the countries that want tough rules for naked CDS selling.

Click here for the story from Reuters.

Click here for additional coverage from The Wall Street Journal.