Regulatory Alerts2020-04-15
ESMA Opinion on the renewal of the FMA emergency short selling ban
The European Securities and Markets Authority issued this opinion on 15 April 2020 to evaluate the Austrian Finanzmarktaufsicht's proposal to renew its emergency ban on short selling and transactions increasing net short positions on Vienna Stock Exchange shares. ESMA determined that the measure is necessary, appropriate, and proportionate to address serious threats to market confidence and financial stability caused by the ongoing COVID-19 pandemic and associated market volatility. The authority endorsed the one-month extension of the ban, which was scheduled to run from 16 April to 18 May 2020, while maintaining specific exemptions for market making and index-related activities.
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