Short-sellers could be faced with increased scrutiny when targeting European companies following the GameStop furore in the US, according to top European regulators.
In Europe, short-sellers already have more regulatory hurdles to overcome than they do in the US. Many European countries, for example, require investors to notify regulators of any short position making up 0.5% or more of a company’s stock. European Commission director for financial markets Ugo Bassi has said that the executive branch may consider tweaking the rules to create even more transparency.