Short-sale "not a negative thing", says EU markets Chief Steven Maijoor

Politicians in France and Germany have been vocal in their criticism of what many consider malicious speculation Photo: AFP

Speaking publicly for the first time, former senior regulator Dutch Steven Maijoor, who was appointed last month, the President of the European Securities and markets (ESMA), Authority said in short circuit, where a trader borrows a security and then immediately sells, hoping to buy it at a lower price, were "not a negative thing.

"I'm not a banner." This will be an activity that is exceptional. "You want to count on the choice and innovation," said Mr. Maijoor, adding that fact short-circuit markets more liquid.

His comments came at a confirmation hearing in the European Parliament, where he was questioned by MEPs.

Short-selling is proven to be highly controversial in recent years, and the United Kingdom and United States both temporarily banned short selling of shares of the financial sector at the height of the financial crisis in 2008. Germany prohibits so-called "naked" shorting - where a security is not even borrowed before it is sold - eurozone government debt last year that the Greek sovereign debt crisis was blamed partly on short-circuit paper fund shares.

Mr. Maijoor said that it remained open to the possible need to prohibit the sale of short, but think that it was more often beneficial to market.

"The question to what extent there was manipulation, was not a clear answer yet," he said.

Politicians in France and Germany have been vocal in their criticism of what many consider malicious speculation and Tuesday, the EU said that it supported edges on speculative investment in commodities such as grain after recent extreme price movements.

Regulator high Bank of the European Union also made his first public appearance since his appointment conditionally employment. At his own confirmation hearing, Adrea Enria explained to MEPs stress tests planned this year for the largest banks in the region would need to be much more difficult than last to regain credibility with the market.

"We cannot rely solely on the conduct of national authorities stress tests." "We peer review to ensure that the results are robust," said Mr. Enria, in an implicit criticism of tests last year doesn't have to soothe market fears.

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