The European Securities and Markets Authority (ESMA) has issued its official opinion agreeing to an extension of the emergency short selling prohibition by the Hellenic Capital Market Commission (HCMC) on the shares of certain credit institutions under the Short Selling Regulation that expires at 24:00:00 (CET) on Monday 7 December 2015.
The measure will remain in place until 24:00:00 (CET) on 21 December 2015 and temporarily prohibits short sales in any shares of five credit institutions 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 those shares. This ban includes 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.
