move to regulate Derivatives. The need for an organised and central market system is important a a key rule of making a market operate well is to have it regulated (with as little bureaucracy as necessary, of course).
However, Michel Barnier's moves for EU regulation today also focus on short-selling and various move sot make this more open (good) and harder to do (bad). As usual the old canard is trotted out about Short selling hurting the banks and causing the financial crisis.
As we know, the Banks managed to blow themselves up all by themselves, with just a little help from Greenspan and other incompetent central government types around the world (Exhibit A - Gordon Brown).
In fact if anything, shorting helps buy providing buyers to a market that otherwise is starved of buyers and leaves sellers watching a collapsing share price rather than a falling one.
But no, in Europe the ire is blamed upon Banks and the City for all their woes, not the issues within Countries (which can be summed up thus, Spain, too much building, Greeks paying no taxes and Ireland letting its banks go nuts on real estate - all caused by membership of the Euro).
Blaming shorting bond and stocks for the Greek situation is just plain silly. If you have not yet read this vanity fair article I suggest you do - it is incredible.
The focus on shorting is pure FUD to distract from teh real underlying problems. Sadly, as nicely as the markets are ticking along now, Greece is going to blow up sooner or later and nothing can really be done about it.