UPDATE 1-Dutch short-selling ban to expire on June 1

* Ban ends in June

* New measure requires reporting of short positions

AMSTERDAM, May 27 (Reuters) - The Dutch stock market regulator AFM said on Wednesday that a ban on the short-selling of shares in banks and insurers would expire on June 1 and it would introduce a measure requiring the reporting of short positions.

AFM said in order to maintain vigilance, the new measure would require short positions taken in Dutch financial institutions to be revealed to the market watchdog. This reporting duty will be in place until January 2010.

Consultations with market players had underlined the importance of short selling for trade in the financial markets, AFM said, adding that it had decided the ban should not last any longer than it deemed necessary.

Regulators around the world cracked down on short selling of financial shares after sellers targeted the sector as the credit crisis worsened. AFM said it expected other regulators to also ease their bans soon.

The AFM originally imposed a ban on naked short-selling in September before expanding the measure to include covered short selling on Oct. 5.

The ban, which was extended several times, had included the short-selling of shares in companies such as ING (ING.AS: Quote, Profile, Research) and Aegon (AEGN.AS: Quote, Profile, Research). (Reporting by Catherine Hornby; Editing by Rupert Winchester)