ECJ Upholds ESMA’s Emergency Powers Under The Short Selling Regulation

On 22 January 2014, the European Court of Justice (the "ECJ") issued its judgment on the UK's challenge of ESMA's powers under the Short Selling Regulation. The UK government sought the annulment of Article 28 of the Short Selling Regulation which allows ESMA to intervene, in the absence of action or adequate action by the national regulator, in a Member State's financial markets in the event of a threat to the orderly functioning and integrity of financial markets or to the stability of the whole or part of the financial system in the European Union. ESMA is able to impose disclose obligations as well as ban short selling. There is no appeal against the ECJ decision. A copy of the judgment is available at: http://www.bailii.org/eu/cases/EUECJ/2014/C27012.html.