Analysis of the application of the Market Abuse Regulation to activist short selling highlights the uncertainties arising from their extensive definitions. In the absence of a definitive standpoint from the AMF on the issue, the practice of short activism remains under the serious threat of a sanction under the European vision of insider trading or the broad scope of market manipulation.
These uncertainties make it necessary to carry out a law and economics study with the aim of outlining the future developments on how to regulate this form of activism through market abuse. As discussions on the review of MAR are underway, short selling activism becomes a tool for measuring the efficiency of European financial regulation.
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