Short-Selling Bans Lifted by Austrian, Belgian, Greek, French, Italian, and Spanish Regulators
May 18th | 2020
In mid-March 2020 temporary short selling bans across several European countries to help deal with the market volatility caused by COVID-19. In a statement published May 18, 2020, the European Securities and Markets Authority announced the “non-renewal and termination” of the emergency restrictions put in place in Austria, Belgium, France, Greece, Italy and Spain. Although the restriction had already been extended in Italy to June 18, the Italian regulator announced it would lift the ban a month early. In a statement released by the French Autorité des Marchés Financiers, they indicated that since the implementation of the ban they have observed a “progressive normalization.”
Net short position reporting temporary reduction remains in place. ESMA’s temporary requirement that the holders of net short positions in shares traded on European Union regulated markets must notify the relevant regulator if a position reaches or exceeds 0.1% of the issued share capital after the entry into force of the decision. That reporting requirement remains in effect until June 16 and can be renewed.