GREECE: HCMC investigating suspected violations of Greece short selling rules

Thursday November 13 2014

It is being reported today that the Greek securities regulator the Hellenic Capital Market Commission is investigating possible violations of Greece short selling rules.

According to the reports, there were indications that rules had been violated in about 150 cases.

The investigation is focusing on suspicion that some funds or individuals participating in rights issues offered by the top four Greek banks – National Bank, Alpha Bank, Piraeus and Eurobank – were shorting bank stocks days before they were due to receive their allotted shares from the issue, the official said.

The regulator had reportedly been tipped off by heavy trading volumes and a sharp fall in bank share prices just before the new shares began trading on the market.

The investigation is expected to conclude in January.

This information will be updated as further details become available.