James Hughes
Media playback is unsupported on your device

Short-selling banned in parts of Europe

12 August 2011 Last updated at 12:07 BST

Regulators have imposed a ban on the short-selling of selected financial stocks in France, Italy, Belgium and Spain.

The move is designed to stop investors betting on share falls and follows days of huge swings in stock prices.

French bank Societe Generale is amongst the firms covered, its shares fell by over 20% at one point on Wednesday.

Greece and Turkey have already imposed similar restrictions.

James Hughes from Alpari, explains why it has been banned.