Short Sales Update

March 18th | 2020

Along with circuit breakers and price collars on exchange trading, financial regulators may also curtail short selling to calm turbulent markets. The restrictions come in many flavors, ranging from bans on short sales of certain stocks (i.e., like bank stocks in 2008) to lowering short reporting reporting levels. Italy and Spain, who have have been hit hard, are now subject to both. As the financial fallout from COVID-19 spreads, keep an eye on Titan’s blog for updates as more jurisdictions take action to restrict short sales.

ItalyShort Sales Banned in all stocks from March 18 – June 18, 2020

Spain– Short Sales Banned in all stocks from March 17 – April 18, 2020

  • Spain has followed Italy by first enacting one-day bans of short sales in certain stocks, followed by a one-month ban (with an option to extend it two more months) on creation or increase of net short positions

UK – Follows decisions of other EU Competent Authorities (e.g., Spain, Italy, France) to the extent affected securities trade on UK markets

BelgiumShort Sales Bannedin certain Euronext Brussels listed stocks from March 18 – April 17, 2020

FranceOne day short sale ban for March 17, 2020

All of the EU – holders of net short positions in shares traded on a European Union (EU) regulated market must notify the relevant national competent authority (NCA) if the position reaches or exceeds 0.1% (the previous threshold was 0.2%)

South Korea – All short-selling in the stock market banned for six months, from March 16 to September 15, 2020.

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