Europe

COMMENT

The “locusts” were the canaries in the coal mine (again): Hedge fund short-sellers vindicated as Wirecard blow-up jolts Germany

The “locusts” were the canaries in the coal mine (again): Hedge fund short-sellers vindicated as Wirecard blow-up jolts Germany

There is precious little to celebrate in the precipitous collapse of Wirecard, the German payments group whose shares have lost 90 per cent in a matter of days amid what now appears to be incontrovertible evidence of a massive and sustained fraud involving at least EUR2 billion of ‘missing’ cash.

Regulation

EU watchdog ESMA tightens short-selling rules amid “serious threat to market confidence”

EU watchdog ESMA tightens short-selling rules amid “serious threat to market confidence”

The European Securities and Markets Authority, the pan-EU financial watchdog, tightened rules on short-selling on Monday, and will now require hedge funds and other holders of net short positions to notify their respective national regulators of positions greater than 0.1 per cent of a company’s share capital.