Euro Short Sales Update

March 17th | 2020

After a one-day ban of short sales in certain stocks failed to curb steep declines, Italy and Spain have renewed the temporary measures enacted last week. On top of that, Spain has instituted a ban on the creation or increase in net short positions. Spanish regulators have the power to extend this ban for up to three months. There are a few exceptions, however, namely for market making, certain convertible bond situations, and certain basket and hedged transactions.

France’s AMF is also implementing a one day short sale ban for March 17, 2020. Belgium is also banning short selling for one day in a number of Euronext Brussels listed stocks. Like before, the U.K.’s Financial Conduct Authority is applying the Spanish and Italian short selling bans to all U.K. trading venues.

These measures are in addition ESMA decision yesterday to lower the minimum thresholds for reporting of net short positions to national authorities from 0.2% to 0.1%.

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