''..The commission's short-selling legislation would require investors to disclose a net position against a company--how "short" they are on the company's shares--to regulators if the position exceeds 0.2% of a company's issued capital. Positions above 0.5% should be disclosed to the public. Trades against the debt of sovereign governments would also have to be disclosed to regulators.
The commission wants to ensure that national decisions to restrict or ban short-selling are coordinated at a European level, after Germany roiled markets earlier this year when it banned short-selling the debt of euro-zone countries and some financial institutions. The proposal will give a coordinating role for the ESMA when national regulators seek temporary bans on short-selling and also allow the ESMA to adopt its own restrictions or bans in periods of market turmoil.
Short-selling orders will also have to be flagged as "short" to provide more information for regulators on trading activity.''
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