Britain ready to help Germany with speculation curb

19th May 2010, Comments 0 comments

British watchdog the Financial Services Authority said on Wednesday that it was ready to assist Germany with its crackdown against speculative trading.

However an FSA spokeswoman declined to comment on whether a similar ban was possible in Britain.

"We note what Germany has implemented and will assist (German regulator) Bafin wherever appropriate," the FSA said in the statement.

"The scope of these bans relate to German participants or business taking place inside Germany and does not cover branches of German institutions outside of Germany/the UK."

Germany has clamped down on speculative trading, introducing new rules Wednesday in a bid to ease the market volatility which it says threatens the eurozone economies.

Germany's securities market regulator Bafin banned so-called "naked" short sales of certain securities, in particular the government bonds of the 16 countries that use the euro.

Naked short selling is when an investor sells on the market a security they do not own and have not even borrowed, hoping to be able to buy it later in the day at a lower price, thereby earning a profit.

© 2010 AFP

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