The Federal Financial Supervisory Authority (BaFin) on Tuesday temporarily prohibited uncovered short sales of debt securities of euro zone countries admitted on a domestic exchange to trading on the regulated market. It also temporarily prohibited credit default swaps (CDS) in which the reference liability is at least also a liability of a euro zone country and is not used to hedge default risks (uncovered CDS).
FTSE Mondo Visione Exchanges Index:
BaFin Prohibits Uncovered Short-Selling Transactions And Uncovered CDS In Government Bonds Of Euro Zone
Date 19/05/2010
Moreover, BaFin prohibited uncovered short-selling transactions in the shares of the following companies from the financial sector:
- AAREAL BANK AG
- ALLIANZ SE
- COMMERZBANK AG
- DEUTSCHE BANK AG
- DEUTSCHE BÖRSE AG
- DEUTSCHE POSTBANK AG
- GENERALI Deutschland HOLDING AG
- HANNOVER RÜCKVERSICHERUNG AG
- MLP AG
- MÜNCHENER RÜCKVERSICHERUNGS-GESELLSCHAFT AG
These prohibitions will apply from 19 May 2010, 00.00 hrs., to 31 March 2011, 24.00 hrs, and will be reviewed on an ongoing basis.
