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Short Sellers Started ‘Twisting’ Cum-Ex to Dodge Scrutiny

Oct. 29, 2019, 5:07 PM

Banks and lawyers involved in Cum-Ex trades started to hide their ties to short selling as early as 2009 amid a government crackdown on the controversial tax practice.

A lawyer who was heavily involved in Cum-Ex deals told a Bonn court Oct. 29 that people involved started omitting the phrase short selling from communications to avoid scrutiny after Germany issued new rules in 2009 targeted that element in the transactions. Nevertheless, everyone involved knew what they had to do without spelling it out, he said.

“If was like in soccer: if two teams meet, no one explicitly needs to tell ...