BELGIUM: FSMA modifies Belgium short selling rules

Tuesday February 14 2012

The Financial Services and Markets Authority has announced that it has decided to modify the rules on Belgium short selling shares in Belgian financial institutions (Dexia SA, Ageas NV/SA, KBC Groep NV and KBC Ancora CVA), effective 13 February 2012, by replacing the interim ban on the holding of net short positions with a reporting obligation for significant net short positions and with the “locate” rule.

Significant net short positions in Belgian financials are once again subject to a reporting obligation, given that they are no longer prohibited. As regards “naked” Belgium short selling, the restrictions that were in place before 12 August 2011 likewise continue to be in effect, with a ‘locate rule’, on the basis of which persons who sell shares without possessing or having borrowed them must make certain arrangements to ensure that they may have a reasonable expectation that the shares sold can be delivered in a timely manner.

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