The European Court of Justice has dismissed the UK’s legal challenge to stop short-selling powers moving to EU regulators.
The UK appealed against the European Securities and Markets Authority gaining new powers to ban short-selling in market emergencies, claiming it fell outside the scope of existing treaties.
In September a senior ECJ adviser had given the UK hope it would be successful by suggesting the new rules superseded national regulators and did not fall in line with the EU law.
The decision is a blow to the UK’s more aggressive approach to tackling financial services rules it does not agree with through the courts.
The ECJ judgment states: “The Court concludes that those powers are compatible with [EU treaties]. As all the pleas in law relied on by the UK have been rejected, the Court dismisses the action in its entirety.”
Leader of Conservative MEPs and economic and monetary affairs spokesman Syed Kamall says: “The ruling is a disappointing development but one which reflects the new reality in which financial regulation is written up and enforced in the EU.
“There is a place for coordinated supervision of the financial markets, but not so that a member state’s ability to respond flexibly to market developments is curtailed.”