EU short-selling ban does not look likely: regulatory source

Thu Aug 11, 2011 11:26am EDT

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(Reuters) - European Union states are unlikely to impose a blanket ban on short-selling of stocks in response to volatile trading in bank stocks, a regulatory source familiar with the situation told Reuters.

"A Europe-wide short-selling ban doesn't look likely," the source said on Thursday.

Earlier ESMA, the European Union's financial market regulator, said it was monitoring the bank share volatility closely and was in touch with national regulators.

There has been speculation that a bloc-wide ban could be imposed since Greece banned short-selling for a period of two months earlier this week.

(Reporting by Alexander Smith; Editing by Andrew Callus)

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