The CNMV has decided to ban short sales during tomorrow’s trading session, 13th of March, on all liquid shares admitted to trading on the Spanish stock exchanges whose price has fallen today, March 12th, more than 10% and on all illiquid shares (in accordance to Delegated Regulation 918/2012) whose price has fallen more than 20%. The 69 shares concerned are listed in the attached annex.
The decision has been taken in accordance with Article 23 of Regulation (EU) No 236/2012 on short selling and certain aspects of CDS (SSR), which enables national competent authorities to temporarily restrict short sales in case of a significant fall in the price of a financial instrument.
The decision has been adopted taking into account the evolution of securities markets in the context of the situation arisen as a result of the COVID-19 virus. European share prices have experienced extraordinary falls (minus 14.06% in the case of IBEX
35) and a significant number of shares have crossed the thresholds set out in the above mentioned SSR and its delegated act.
The CNMV also considered the risk of disorderly price movements in European stock markets, including the Spanish one.
For the purposes of this decision, a short sale is defined in Article 2.1.b of SSR.
Market making activities, as defined in article 2.1.k of the SSR are exempted from this measure.
ESMA has been informed of the CNMV’s decision in accordance with said Article 23.
The measure has taken effect immediately since its publication on the CNMV’s website.
