GREECE: ESMA issues opinion on extension of Greek emergency short selling measures

Thursday November 1 2012

On 1st November the European Securities and Markets Authority issued an opinion on whether it considered the measures taken by Greece to extend its Greece short selling ban beyond 1 November were necessary to address the exceptional circumstances. This is in line with its powers under Article 27 of the EU Regulation on Short Selling.

The emergency measure concerned consists of a temporary prohibition on short selling of shares and units of Exchange Traded Funds admitted to trading on the Athens Exchange irrespective of the venue where the transaction is executed. The Greece short selling temporary prohibition includes sales which are covered with subsequent intraday purchases. The short selling temporary prohibition applies to all depository receipts (ADRs, GDRs) representing shares admitted to trading on the Athens Exchange. It reflects a continuation of the measure introduced on 24 July 2012 under the national law. The measures will apply until 31st January 2013.

ESMA considers that there are adverse developments which constitute a serious threat to financial stability and to market confidence in Greece. It considers that the measure is appropriate and proportionate to address the above-mentioned threats that persist in Greece, and the duration of the measure is justified and appreciates the HCMC’s statement in its notification of intent whereby the measure may be lifted during the period of enforcement of the measure, if considered necessary.

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