Written Question: Gamestop short selling
(Source: European Parliament)
Date submitted: 16 February 2021
Question for written answer E-000948/2021
to the Commission
Eero Heinäluoma (S&D)
Subject: Gamestop short selling
The Gamestop saga, which has created waves on the US stock market in recent weeks, would appear to be spreading to Europe, where other stocks such as Nokia have experienced much higher trading volumes than usual. The same can be witnessed with the value of silver. The link between the rise of stocks in companies such as Gamestop and the economic reality is not always very clear.
- Does the Commission believe that the EU and the Member States are prepared from a regulatory perspective to address such unusual fluctuations in trading volumes, particularly if they are inspired as a reaction to short sellers?
- Does the Commission believe that the current Market Abuse Directive is still fit for purpose in the digital area, or does it intend to propose changes to it given the potential consequences of rumours on social media for the stock value of certain companies?
- The current COVID-19 crisis has put a lot of companies – even those with healthy business models – under massive liquidity pressure. These companies could also fall victim to short selling practices. Does the Commission deem it necessary to protect some of these companies and, if so, how does it intend to protect them?