Apparently, an extension of the ban is being mooted that would encompass a ban on short selling of all shares and, bizarrely, euro-denominated currency derivatives. Quite what the German authorities think they will gain from such market-disruptive nonsense is hard to fathom.
How might a ban on naked currency option short positions possibly work? Ignore, for a moment, the fact that it is at present only the Germans that are suggesting this and imagine that the ban is implemented globally.
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