EU Countries Issue Temporary Short Selling Prohibitions
March 15, 2020
Calling it a precautionary action essential to enable authorities to monitor market developments during the coronavirus pandemic, the European Securities and Markets Authority (ESMA) has temporarily lowered its reporting threshold for short position holders.
The decision temporarily requires the holders of net short positions in shares traded on a European Union regulated market to notify the relevant national competent authority if the position reaches or exceeds 0.1 percent of the issued share capital.
Below are current regulatory authorities in Europe issuing temporary short selling prohibitions:
Belgium: Belgium’s Financial Services and Markets Authority (FSMA) announced prohibitions on short selling and similar transactions on the regulated market of Euronext Brussels available here.
France: The French financial regulator, Autorité des marchés financiers (AMF), issued a temporary prohibition on short sales available here.
Greece: Hellenic Capital Market Commission (HCMC) announced prohibitions on short selling and certain aspects of credit default swaps. The announcement and FAQs are available here.
Italy: The Italian Commissione Nazionale per le Società e la Borsa (CONSOB) prohibited short selling on the entire stock exchange list. The announcement is available here.
Spain: The Comisión Nacional del Mercado de Valores (CNMV) temporarily banned the creation or increase of net short positions on shares available here.
United Kingdom: The UK Financial Conduct Authority (FCA) has issued temporary prohibitions on short selling as a result of the disruption experienced in a number of markets due to the COVID-19 pandemic. The announcement is available here.
TAGS: ESMA, Short Selling, Coronavirus