German short-selling ban hits trading volumes

Credit markets take a knock as confusion dominates the European debt markets following last night's surprise German curb on short-selling

Trading volumes in the credit markets took a knock this morning as confusion dominated the European sovereign debt market following last night’s surprise German curbs on short-selling.

The German regulator BaFin yesterday said that it would ban short selling on government bonds and "naked" positions on the sovereign credit default swaps market.

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