Regulatory Alerts2020-03-17
ESMA Opinion on CONSOB Emergency Measure under SSR
The European Securities and Markets Authority (ESMA) issued an opinion on 17 March 2020 endorsing a proposed emergency measure by the Italian regulator CONSOB to ban the creation or increase of net short positions on shares traded on the Italian MTA. This restriction, effective from 18 March to 18 June 2020, was deemed necessary to address serious threats to market confidence and financial stability caused by the COVID-19 pandemic-induced price volatility and rising short positions. ESMA concluded that the measure is appropriate and proportionate, noting that it includes exemptions for market makers and specific hedging activities to minimize disruption to liquidity.
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