FRANCE: AMF responds to query concerning extent of measures prohibiting covered France short selling in certain financial stocks

Wednesday August 17 2011

The Autorité des marchés financiers (AMF) has replied to a query as to whether the roll over of futures contracts are covered by the recent France short selling prohibitions. The AMF responded as follows:

“…a short position which was taken before the AMF’s ban came into effect (i.e., 11 August 2011) and the maintenance of which was accepted, shall be considered as relating to a specific expiry date. A “rolling” of such a position would therefore be construed as the taking of a new position which is prohibited under the AMF’s decision of 11 August 2011 (unless the position so taken in relation to the securities listed in the AMF’s decision is otherwise covered or unless the position results from trading in index derivatives for the purpose of hedging the general market risk related to an equity portfolio and is marginal).”