Germany wants to ban all short selling "naked".

Keywords: selling, derivatives, euro, GERMANY, BaFin.

The German Financial Markets Authority wants to apply the prohibition to all stocks listed on the Frankfurt Stock Exchange, a week after banning sales to "naked" CDS and some financial stocks. Berlin defends himself to "go it alone.

A week after causing panic on financial markets and the ire of its European partners by announcing, without first consulting the ban on short selling "naked" on the financials, Germany intends to strike a blow against speculation. The country could extend the ban to all stocks listed on the Frankfurt Stock Exchange. The Dow Jones Newswires said that the project could be discussed next week by the cabinet.

Not alone , as Berlin:
The German Government has forbidden to act without consulting its European partners. "We want to send a clear signal to markets that we will act where we can on a national basis to fight against speculation and excessive speculation in general, to calm markets and restore confidence," said the carriers Finance Ministry spokesman, Michael Offer, at a press conference. He assured that this decision is part of "measures decided at the Eurogroup to ensure stability in the euro area.
It is a document of the German Ministry of Finance suggests that this expansion of the ban on naked short selling on all German stock market. The text also suggests a ban on foreign currency derivatives on the euro for non-hedging transactions. He also advocates the creation of a transparent system for short selling transactions.

Voltage expected in financial markets:
On 19 May, the German Financial Markets (BaFin) had banned until March 2011, investors sell bonds and insurance against risk of failure of a state (CDS) that they do not hold, and they are not assured of the availability (short selling "naked"). The shares of the banks and insurance companies in Germany are also involved (Allianz, Deutsche Bank, Commerzbank, Deutsche Postbak, Munich Re, Hannover Re, Deutsche Börse, Generali Deutschland, Aareal Bank and MLP).
Following this decision, the euro had touched a low of less than $ 1.22. Approximately 13:30 on Wednesday, the single currency was worth 1.2321 dollars (-0.14%).
Unlike the last meeting of May 19 where the CAC 40 had lost almost 3%, the financial markets were unimpressed with respect to this announcement. The CAC 40 was up 2.67% to 3420 points to 13.30.