Regulatory Alerts2020-03-19
ESMA Opinion on HCMC Emergency Short Selling Ban under Regulation EU No 236/2012
The European Securities and Markets Authority (ESMA) issued this opinion on 19 March 2020 to evaluate the necessity of an emergency short-selling ban proposed by the Hellenic Capital Market Commission (HCMC) for the Athens Stock Exchange. ESMA determined that the measure is necessary, appropriate, and proportionate to address serious threats to market confidence and financial stability in Greece caused by the severe price volatility and downward spirals resulting from the COVID-19 pandemic. The authority endorsed the temporary prohibition on opening or increasing net short positions, noting that it would help protect investors and prevent further exacerbation of market instability while maintaining necessary exemptions for market makers.
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