Key takeaways 

• EU agrees on new rules (i) introducing reporting requirements on significant short positions, (ii) providing for emergency powers in exceptional situations to require further transparency or to restrict short selling and CDS transactions and (iii) prohibiting naked short selling of shares and sovereign bonds as well as sovereign credit default swaps when they are not used to hedge correlating exposure; 
• The proposed regulation still needs to be formally adopted by the European Parliament and the Council and is expected to enter into force in November 2012.