Regulatory Alerts2020-03-24
ESMA Opinion on Austrian FMA emergency short selling ban under Regulation (EU) No 236/2012
The European Securities and Markets Authority (ESMA) issued an opinion on 23 March 2020 confirming the necessity of an emergency short selling ban introduced by the Austrian Finanzmarktaufsicht (FMA). ESMA determined that the COVID-19 pandemic created serious threats to market confidence and financial stability in Austria due to severe price volatility, information asymmetry, and disinformation. The regulator concluded that the one-month prohibition on short sales and related transactions is appropriate and proportionate to address these exceptional circumstances.
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