Three days ago regulators issued a statement saying they would not ban short-selling. They repeated that statement earlier today, then reversed course. In France, the short-selling ban includes a group of select bank and financial institutions. Here is the AMF News Release. The Chairman of the Autorité des marchés financiers (AMF), acting in accordance with Article L. 421-16 II of the Monetary and Financial Code, has decided to place a ban on creating any net short position or increasing any existing net short position, including intraday, by any person established or residing in France or in another country, in the equity shares or securities giving access to the capital of the following credit institutions and insurance companies: April Group Axa BNP Paribas CIC CNP Assurances Crédit Agricole Euler Hermès Natixis Paris Ré Scor Société Générale This decision shall enter into force as soon as it is published on this AMF website as from 22.45 today and shall remain in effect for a period of fifteen days. It may be extended beyond that date pursuant to the conditions provided in the aforementioned Article L. 421-16 II. This decision does not apply to financial intermediaries acting as market makers or liquidity providers when they are operating under a contract with the relevant market undertaking or with the issuer concerned, or when acting as counterparty for block trades in equities. The AMF will publish a FAQ to deal with the technical questions raised by this decision. Spain Bans Shorting and Derivatives Based Shorting FT Alphaville, in Will the short-selling ban come up short? notes the Spain ban includes artificial shorting via derivatives. Here's the Spanish statement (translated using Google Translate). Note the specific references to derivatives: .... The ban will remain for a period of 15 days from the date, may be extended if deemed neces.
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2011
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August
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