Short selling

Short selling allows an investor to profit from a fall in the price of a security by selling securities that are borrowed or intended to be acquired later. It may support liquidity and price discovery, but can create settlement failures or contribute to disorderly markets if used abusively. Switzerland does not operate the same general short-selling regime as the EU, but trading venue rules, market abuse prohibitions, settlement discipline and emergency supervisory measures may be relevant. Cross-border trading in EU instruments or on EU venues can trigger EU short-selling requirements.