ESMA: Opinion On The Emergency Measure By The Greek HCMC Under The Short Selling Regulation

The European Securities and Markets Authority (ESMA) has published its Opinion on the emergency measure by the Greek Hellenic Capital Markets Commission (HCMC) under the Short Selling Regulation.

The measure is expected to enter into force on 1 May 2013 at 0:00:01 hours (Athens time) and to be applicable until 24:00:00 (Athens time) on 31 July 2013.

ESMA Opinion
ESMA is adopting the following opinion on the notified measure, on the basis of Article 27(2) of Regulation 236/2012 on Short selling and certain aspects of credit default swaps:

On the adverse events or developments
ESMA considers that there are adverse developments relating to the banking sector which constitute a serious threat to financial stability and to market confidence in Greece.

On the appropriateness and proportionality of the measure 
ESMA considers that the measure which is targeted at credit institutions admitted to trading on the Athens Stock Exchange remains appropriate and proportionate to address the above mentioned threats that persist in Greece.

On the duration of the measure
ESMA considers that the duration of the measure is justified and appreciates the HCMC’s statement in its notification of intent whereby the measure may be lifted during the period of enforcement of the measure, if appropriate.