Advocate General Supports UK Short Selling Challenge

13/09/13

Advocate General Jaaskinen has advised the Court of Justice of the EU to grant the United Kingdom's challenge and annul Article 28 of the Short Selling Regulation (Regulation 236/2012). The AG ruled in favour of the UK on one of its grounds, holding that Article 28 went beyond internal market harmonisation, and so Article 114 TFEU was not a proper legal base. If the Court follows the Opinion, the power conferred on the European Securities and Markets Authority to ban short selling will be struck down, and a replacement provision could only be adopted unanimously by all of the EU Member States (under Article 352).

The opinion is here.