25 May 2020
International Legal Sector

ESMA communicates non-renewal and termination of short selling bans by Austrian FMA, Belgian FSMA, French AMF, Greek HCMC, Italian CONSOB and Spanish CNMV

As announced on the website of the European Securities and Markets Authority (ESMA) on May 18th, 2020, the non-renewal and termination of the emergency restrictions on short selling and similar transactions has been approved by six different member states of the European Union.   

In particular, the announcement concerns the following national competent authorities (NCAs): Finanzmarktaufsicht (FMA) of Austria; Financial Securities and Markets Authority (FSMA) of Belgium; Autorité des Marchés Financiers (AMF) of France; Hellenic Capital Market Commission (HCMC) of Greece; and Comisión Nacional del Mercado de Valores (CNMV) of Spain. Furthermore, the early termination of the emergency restrictions by the Commissione Nazionale per le Società e la Borsa (CONSOB) of Italy is noted, which was originally due to expire on the 18th of June 2020. ESMA has coordinated the recent emergency restrictions renewals and has contributed to this aligned action. 

This announcement follows a decision issued by ESMA on the 16th of March, 2020, that temporarily required holders of net short positions in shares traded on a EU regulated market to notify the relevant NCA if the position reaches or exceeds 0.1% of the issued share capital after the entry into force of the decision. This measure remains in force until the 16th of June and can be renewed.

In coordination with the NCA´s, ESMA continues to monitor developments in financial markets as a result of the COVID-19 situation, being prepared to use its powers to ensure the orderly functioning of EU markets, financial stability and investor protection.

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