UK Looks to Reverse EU Rules on Short-Selling of Government Debt

The UK government wants to get rid of European Union restrictions on the short-selling of UK government bonds, part of a broader post-Brexit divergence from the bloc.

The nation’s Treasury proposed to scrap the European rules placed on investors taking short positions in government debt or credit-default swaps, which it says have harmed liquidity. The UK said it originally raised concerns about the regulation when it was still part of the EU, abstaining from voting in favor of the package.

The curbs, a response to the European government debt crisis, ban so-called naked short selling of government bonds, meaning all ...