Regulatory Alerts2020-03-17
ESMA Opinion on CNMV Emergency Measure under Short Selling Regulation
The European Securities and Markets Authority issued an opinion on 17 March 2020 endorsing the Spanish regulator CNMV's emergency ban on opening or increasing net short positions in Spanish shares. This measure was adopted to address severe threats to market confidence and financial stability caused by the COVID-19 pandemic and the resulting state of emergency in Spain. ESMA concluded that the one-month prohibition is necessary, appropriate, and proportionate to prevent downward price spirals and protect the orderly functioning of the Spanish financial market.
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