Regulatory Alerts2011-08-27
Agreement of 25 August 2011 of the National Securities Market Commission regarding short positions on Spanish financial sector shares
The Spanish National Securities Market Commission (CNMV) has extended the provisional prohibition on establishing or increasing short positions on Spanish financial sector shares until September 30, 2011. This extension maintains the restrictions originally imposed on August 11, 2011, in response to continued high volatility and instability in European financial markets. Non-compliance with these precautionary measures is classified as a very serious offense under the Securities Market Law.
OFFICIAL STATE GAZETTE No. 206 Saturday, 27 August 2011 Sec. III. Page 93951
III. OTHER REGULATIONS NATIONAL SECURITIES MARKET COMMISSION 14188 Agreement of 25 August 2011 of the National Securities Market Commission regarding short positions on Spanish financial sector shares.
On 11 August 2011 ("BOE" of 13 August), the National Securities Market Commission (hereinafter CNMV) agreed to provisionally prohibit the execution of transactions on securities and financial instruments that would result in the establishment or increase of short positions on Spanish financial sector shares. Having assessed the period elapsed since its adoption as well as the current conditions of European securities markets, which continue to exhibit high volatility and instability in prices, especially for financial securities, and taking into account similar measures adopted by other European supervisors within the framework of ESMA, the President of the National Securities Market Commission, by virtue of the delegation of powers granted by the Board on 6 July 2011 ("BOE" of 18 July), has adopted the following agreement:
"Extend the validity of the agreement dated 11 August 2011 until 30 September 2011, under Article 85.2 j of Law 24/1988 of 28 July on the Securities Market (LMV).
Consequently, the execution by any natural or legal person of transactions on securities or financial instruments that result in the establishment or increase of short positions on Spanish financial sector shares is provisionally prohibited until 30 September 2011, under the same conditions established in the aforementioned agreement of 11 August.
This prohibition may be lifted before the end of its validity or exceptionally extended if deemed necessary.
It is recalled that Article 99 z) quinquies of the LMV classifies the non-compliance with the precautionary measures provided for, among others, in letter j) of Article 85.2 of the Law as a very serious offense."
Madrid, 25 August 2011.–The President of the National Securities Market Commission, Julio Segura Sánchez. cve: BOE-A-2011-14188 http://www.boe.es OFFICIAL STATE GAZETTE D. L.: M-1/1958 - ISSN: 0212-033X