UK sues EU over plans to ban short selling 07 June 2012London Reporter: Mark Dugdale
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It has been reported that the UK’s Chancellor of the Exchequer, George Osborne, has filed a lawsuit against the EU in a bid to stop it giving the European Securities and Markets Authority (ESMA) the power to limit or to ban short selling in an emergency.
The lawsuit was reportedly filed with the Court of Justice for the EU on 30 May.
ESMA was established in January 2011 to act as an independent EU authority to help to safeguard the stability of the EU's financial system.
In the UK’s lawsuit against the EU, its lawyers will argue that that the short selling powers are illegal because ESMA has wide discretionary powers that are outside of the scope of EU treaties, according to reports.
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