21 September 2008

AMF, BaFin et al halt short selling measures

European regulators undertook steps to stop short-selling practices on their financial markets following the examples in the US and the UK. CESR produced a table providing information about the most recent measures adopted in EU member states.

European regulators in France, Germany, the Netherlands, Portugal and Ireland undertook steps to stop short-selling practices on their financial markets following the examples in the US and the UK. CESR now produced a table providing information about the measures adpoted by EU member states.

 

The French AMF stopped short-selling for a minimum of three months, while the German BaFin said short sales were banned with immediate effect until the end of the year. The Dutch Finance Minister is banning "naked" short-selling of financial stocks for the next three months to increase the stability of financial markets effective from Monday. In Germany, the ban affects 11 shares, in France 15. 

 

CESR said it has been co-ordinating actions by its Members and states that some EU securities regulators have adopted, or are in a process of taking actions in their respective markets either to limit or to introduce stringent requirements or further reporting obligations by firms to supervisory authorities on short-selling. Other Members are currently considering whether additional requirements to the ones already existing would be necessary, CESR said.

 

Also outside the European jurisdictions the authorities undertake similar steps. Australia for example will suspend short-selling until the implementation of the Government’s foreshadowed amendments. Taiwan's financial regulator is reported to have said it is re-imposing a ban on short-selling in shares of 150 companies at prices below their closing levels in the previous session.

 

Dubai’s main bourse said on Sunday short-selling was not in keeping with regulatory rules and urged all parties operating in the market to abide by regulations, and the UAE's Securities and Commodities Authority on Saturday warned portfolio funds to refrain from illegal practice of 'short-selling'.

 

AMF press release

BaFin press release

Irish Financial Regulator

ASIC (Australia)

CESR press release, table of measures recently adopted

 

© Graham Bishop