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Supervision prohibits speculation on falling share prices in the case of Wirecard

hedge funds can no longer put the Dax-listed company with short sales under pressure, has decided the financial supervision. The financial authority, Bafin,

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Supervision prohibits speculation on falling share prices in the case of Wirecard

hedge funds can no longer put the Dax-listed company with short sales under pressure, has decided the financial supervision.

The financial authority, Bafin, has new speculation on the case says the end of share prices with the payment service provider Wirecard. From now on, it is prohibited to establish new net-short positions in the shares of Wirecard AG or to increase existing net short positions, according to the Department. Short sellers, speculators, the falling prices make money. According to the Federal Gazette Slate Path Capital and Odey Asset Management have built up in February, short positions against Wirecard. Both are hedge funds.

The so-called General decree of Bafin applies up to 18. April and may be extended, explain the authority (PDF). You justified your ban with adverse developments which constitute a serious threat to market confidence in Germany. The European securities and markets authority Esma has approved the prohibition. "The proposed measure is appropriate and proportionate to address the threat of the German financial markets", Esma.

media reports about possible accounting violations caused the share price of payment service provider Wirecard in the last two weeks, repeatedly break. Wirecard denied that rule violations were found. Thus, strong fluctuations in the share index, the Dax, is exceptional. Wirecard is since September 2018 in the Dax. The EU had imposed after the financial crisis, the possible ban on short selling.

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