LONDON, Sept 12 The power of the European
Union's Paris-based market watchdog to ban short-selling in any
member state should be annulled, an adviser to the EU's top
court said in an opinion that will please Britain which brought
Britain had argued that such a power, part of a new EU law
introduced last year, went beyond what the watchdog could do
under the EU treaty.
It is one of several attempts by the UK to push back on
increasing centralisation of regulation at EU level at the
expense of London, the bloc's biggest financial centre.
"The emergency powers granted by that article to the
European Securities and Markets Authority to intervene in the
financial markets of member states so as to regulate or prohibit
short selling go beyond what could be legitimately adopted as a
harmonising measure necessary for the establishment or
functioning of the internal market," Advocate General Jaaskinen
said in a statement.
The article in the EU's short-selling law granting ESMA such
power should be annulled, Jaaskinen said.
Such non-binding opinions from advocate generals at the
European Court of Justice are typically endorsed by the full
court in a majority of cases.