German market watchdog bans shortselling of Wirecard shares

BERLIN — Germany’s financial market regulator has issued a two-month ban on short-selling shares in Wirecard AG, whose stock has swung sharply in recent months.The regulator said Monday that short-selling in Wirecard’s stock could cause uncertainty over its share price, with potential knock-on effects for the wider market.In short-selling, traders sell shares they do not own, but only borrowed, with the possibility to buy them back. It’s often used to bet on a share’s drop.Munich-based Wirecard specializes in handling transactions and providing banking cards for other financial institutions.Its share price hit 199 euros ($224) last year before declining, and recently dropped sharply following media reports of possible irregularities. The bank has denied wrongdoing.On Monday, its shares were up 13.1 per cent in Frankfurt at 113 euros ($127.24).The Associated Press

Leave a Comment

Your email address will not be published. Required fields are marked *