2/18, 8:26 AM (Source: TeleTrader)
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BaFin temporarily bans Wirecard shorting

Germany's regulator Federal Financial Supervisory Authority (BaFin) issued a two-month ban on establishing or increasing net short positions of shares of Wirecard AG on Monday, citing financial stability concerns.

Wirecard's share price performance "constitutes a serious threat to market confidence in Germany," the financial regulator stated, as the company became a target for "short attacks," which were reportedly "followed and facilitated by negative reporting in the media."

The recent events have "resulted in uncertainty in the market, particularly with regard to the appropriate price determination for shares of Wirecard AG. In the current situation, there is a risk that this uncertainty will increase and escalate into general market uncertainty," BaFin said in its statement.

Wirecard's stock lost 33% in the past month following allegations of the company's fraudulent practices in Singapore.

Breaking the News / MD