EU: ESMA issues negative opinion on proposed extension of Greek short selling ban

Wednesday January 13 2016

The European Securities and Markets Authority (ESMA) issued a negative opinion regarding the proposed extension of the emergency short selling prohibition on Attica Bank S.A. (ISIN GRS 001003011) by the Hellenic Capital Market Commission (HCMC).

The HCMC had proposed extending the prohibition on short sales in any shares of Attica Bank admitted to trading on the Athens Exchange, irrespective of the venue where the transaction is executed. The previous ban expired at 24:00 (CET) on 11 January 2016.

The temporary ban proposed including sales of shares covered by subsequent intraday purchases and applied to all depository receipts (ADR’s, GDR’s) and to Attica Bank warrants on shares admitted to trading on the Athens Exchange. It was proposed to apply to all natural persons, irrespective of country of residence, with an exemption applied for market making activities, provided the short-selling transactions were conducted for hedging purposes.

ESMA has however rejected the extension, considering “That adverse developments that had constituted a serious threat to market confidence in the Greek market have eased and therefore the proposed prolongation of the ban would not be appropriate or proportionate”.

The HCMC may decide to renew the emergency short selling ban despite the opinion of ESMA. However should it decide to do so, it must publish its reasons for doings so within 24 hours.

For more information on the ESMA announcement, please see the above link:

Please also see our article of 04 Jan concerning the previous ban imposed:

http://www.funds-axis.com/news-articles/greece-hcmc-extends-and-modifies-greece-short-selling-ban/