European Union:
EU Countries Issue Temporary Short Selling Restrictions
25 March 2020
Akin Gump Strauss Hauer & Feld LLP
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As a result of the disruption experienced in a number of
markets, the UK Financial Conduct Authority (FCA), the Italian
securities regulator (Commissione Nazionale per le Società e
la Borsa (CONSOB)) and the Spanish securities regulator
(Comisión Nacional del Mercado de Valores (CNMV)) have
issued a temporary prohibition of short selling certain shares
today, March 13, 2020. We set out below hyperlinks through which
lists of the shares subject to the temporary prohibition can be
accessed. The regulators may renew the ban on a rolling basis until
they deem market order has been restored.
UK: https://www.fca.org.uk/news/news-stories/temporary-prohibition-short-selling
Italy: http://www.consob.it/web/consob-and-its-activities/other-regulatory-measures/documenti/english/resolutions/res21301.htm
Spain: https://www.cnmv.es/PORTAL/AlDia/Comunicaciones-Publicas.aspx
Other European Union financial regulatory authorities, including
the Dutch, German and French financial regulators, are monitoring
market activity and may issue similar bans later. Existing
stock-specific bans continue to be in force. In addition, market
turmoil has resulted in the introduction by South Korea's
Financial Services Commission of a blanket ban of all short-selling
in the stock market for six months commencing on Monday, March 16,
2020.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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