France, Spain and Italy extend restrictions on the short selling of shares in financial companies

The fixed period bans on short selling the shares of certain named financial companies introduced by France, Spain and Italy on 12 August 2011 have been extended for varying periods.  The indefinite ban in Belgium remains in place until “market conditions allow” its lifting.

The European Securities and Markets Authority ("ESMA") issued a press release last night describing itself as coordinating action on short selling in countries where bans are currently in force

Click here to read the ESMA statement in full.  This provides links to yesterday’s press statements by the European regulators that have restricted short selling.  In summary:

• France’s ban is due to end on 11 November, 2011 but will be re-evaluated before the end of September.
• Spain’s ban will end on 30 September, 2011 but may be lifted earlier as market conditions allow
• Italy’s ban will end on 30 September, 2011 but may be lifted earlier as market conditions allow.

A short selling ban introduced in Greece slightly earlier to those above is due to end on 7 October 2011 but will be reevaluated before the end of September.

ESMA table on short selling

On 25 August 2011 ESMA also published an update to its consolidated table of the measures taken by EU competent authorities regarding short selling.  This is available here on the ESMA website at all times.  This is mostly up to date but can occasionally be a day or more behind sudden developments.

For the latest information on short selling bans, the named issuers and related FAQs published by the relevant authorities (many of which have been updated since the introduction of the bans in response to market participants’ questions), please refer to the websites of the regulator in the country of the market in question.

Click here for France’s Autorité des Marchés Financiers

Click here for Spain’s Commission Nacional del Mercado de Valores

Click here for Belgium’s Financial Services and Markets Authority

Click here for Italy’s Commissione Nazionale per le Società e le Borse

Click here for Greece’s Hellenic Capital Market Commission.

If you have any questions regarding this subject, please contact Peter Moore, Stephen Burke or Alan Leale-Green. Alternatively telephone 020 7408 2448 to speak to your usual IMS contact.