Germany may extend ban on naked short selling

The proposals outlined by the ministry in a draft bill to be discussed by the German cabinet next week also include a new "transparency system" for short selling.

Germany's Finance Ministry on Tuesday proposed extending Germany's ban on some "naked" short selling of securities to cover all stocks and euro currency derivatives not intended for hedging.

The expanded ban goes beyond the prohibition of naked short-sales of certain financial stocks imposed last week.

WSJ Logo