Germany mulls more disclosure for options trading
BERLIN, Nov 10 (Reuters) - Germany is considering banning the undisclosed accumulation of shares in listed companies through options trading, and wants to boost transparency on its financial markets, the Finance Ministry said on Monday.
The Financial Times Deutschland had cited unnamed politicians in Chancellor Angela Merkel's left-right coalition as saying investors would by early next year have to register transactions made via options and derivatives contracts.
"We are having talks on this subject, but there is nothing concrete, no decision," said a Finance Ministry spokesman.
Angry investors called for changes to the rules last month when German sports car maker Porsche (PSHG_p.DE) quietly built up its holding in Europe's biggest car maker Volkswagen (VOWG.DE) and ended up with indirect control of 74.1 percent.
It had used cash-settled options as a vehicle for much of the stake building, so hedge funds holding short positions in Volkswagen lost billions of euros.
It is the second time in just a few months that the rules have been questioned. In July, ballbearing maker Schaeffler amassed 36 percent of Continental AG (CONG.DE) using credit derivatives that had been arranged discreetly by its banks.
Investors have called for greater transparency to restore confidence in global financial markets.
"We would definitely have liked to see the extent of Porsche's holding in Volkswagen ... We would like to see this issue addressed," Peter Montagnon, chairman of the International Corporate Governance Network (ICGN), told Reuters recently. (Reporting by Paul Carrel, writing by Madeline Chambers, editing by Will Waterman)
