May 8 (Bloomberg) -- A U.K. challenge to overturn parts of a short-selling law that would allow bans on naked credit-default swaps tied to sovereign debt will be heard by the European Union’s top court on June 11.
The EU Court of Justice in Luxembourg added the hearing date to its updated diary today. The U.K. last year appealed the new law, seeking to overturn parts it argues may give an EU regulator too big a mandate.
The European Securities and Markets Authority, which coordinates the work of national regulators in the 27-nation bloc, would get powers under the law that go beyond what is allowed by the EU’s treaties, according to the U.K.
Among its arguments, Britain has said ESMA has “a large measure of discretion” about when it takes action, is “given a wide range of choices as to what measure or measures to impose” and “is empowered to renew its measures without any limit on their overall duration.”
The case is: C-270/12, United Kingdom of Great Britain and Northern Ireland v. Council of the European Union, European Parliament.
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