Regulatory Alerts2020-04-15
ESMA Opinion on CNMV Emergency Measure under the Short Selling Regulation
The European Securities and Markets Authority (ESMA) issued an opinion on 15 April 2020 approving the Spanish regulator CNMV's request to renew its emergency ban on short selling and net short positions on Spanish equities. The measure, effective from 18 April to 18 May 2020, aims to address serious threats to market confidence and financial stability caused by the COVID-19 pandemic and associated economic restrictions. ESMA deemed the one-month extension appropriate and proportionate, noting that the ban helps prevent downward price spirals and self-reinforcing market instability while maintaining specific exemptions for market makers and hedging activities.
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