We know itâs hard to assess the scale of naked shorting in any particular security. However, it does make sense to look to the scale of conventional âborrowed-stockâ shorting activity for an indication. Data Explorers â which tracks short positions in the market â has looked into the matter and provided FT Alphaville with the following chart on Wednesday. It shows the percentage of shares outstanding in the specific names affected by the ban â click to enlarge: As can be seen, apart from Commerzbank, the scale of shorting activity was actually â relatively speaking â following a declining trend in recent weeks. This chart, meanwhile, shows how the shorting activity in those names compared to general shorts in DXI German common stock: As Data Explorers explains: Note: the spreadsheet track the German DXI tracks the change in short interest across the German common equity market (90 companies, large, mid and small cap to a value of $780mm) and the ten names that have been the subject of the naked short selling ban. We have removed approximately 50 small caps names with a valuation less than Aareal Bank AG (subject to the naked ban) in order to compare like with like. The report is broken into two sections; the DXI (Data Explorers Indices) and the ten names subject to the naked short selling ban. Here, meanwhile, are their main conclusions (our emphasis): Â· The German ban is on naked (i.e. no borrow) short selling on 10 financial names. There is also a ban on buying CDS coverage for government bonds that are not owned. Â· Our data shows that the short interest (as measured by percent shares outstanding on loan) has been trending down since Feb 2010. Against this, the larger German market has seen a gradual increase. Â· Out of the ten names that are subject to the naked short selling ban only Commerzbank has seen relatively high levels of short interest over the past year and a half (at around 5%). The other remaining named stocks are well under 2%. Â· We do not track naked short interest. http://ftalphaville.ft.com/blog/201...-financials-really-an-issue/?updatedcontent=1 This is a distraction from SchÃ¤uble's finance ministry to calm the German public. There is absolutely NO EVIDENCE AT ALL that naked short selling was an issue in Germany's financial stocks. Pure politics.