ESMA issued its official opinion agreeing to an emergency short selling prohibition, for a period of 30 calendar days, by the Hellenic Capital Market Commission under the Short Selling Regulation which replaces the prohibition that expired on Monday 31 August.
The measure will remain in place until 30 September 2015 and temporarily prohibits transactions in any shares and units of Exchange Traded Funds admitted to trading on the Athens Exchange and the Multilateral Trading Facility of “EN.A” (Alternative Market of the Athens Exchange). It will also concern all depository receipts (ADRs, GDRs) representing shares admitted to trading on the Athens Exchange and the Multilateral Trading Facility of “EN.A” This ban would include sales which are covered with subsequent intraday purchases.
The short selling measure applies to any natural or legal person, irrespective of their country of residence, but would be subject to the exemption for market making activities, provided that short selling transactions are conducted for hedging purposes.
ESMA considers that adverse developments which constitute a serious threat to market confidence in the Greek market still persist and that the proposed measure is appropriate and proportionate to address those threats.
Full ESMA Opinion
© ESMA
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