Germany set to expand short-selling ban

The German Government plans to outlaw the naked short-selling of all stocks listed on its exchanges, enlarging last week's contentious ban on shorting key financial stocks.

The FT reports says the move is part of a national crackdown on financial-market speculation, which Berlin believes has gone unregulated for too long. Last Tuesday, Berlin surprised global markets by introducing the partial ban on naked short selling - the practice of selling securities such as shares and bonds are not owned or borrowed - of 10 financial stocks. People briefed on the matter said the Government was now following through on a promise turn last week's ban announced into more permanent legislation, the FT reports. Cabinet could sign off a bill next month.