GREECE: HCMC Q&A on short selling

Wednesday August 12 2015

The Hellenic Capital Markets Commission (HCMC) have published a Q and A following the reopening of the securities market.

Within this Q and A, there is a section on the short selling ban.

Relevant questions and answers include:

In line with the ban on transactions in any financial instrument which leads to the creation or increase of short positions, are investors able to open a short position in futures with shares as their underlying?

No, investors are not permitted to do this if it creates or increases a negative position in the underlying equity. However, investors can open a short position in futures if doing so offsets an existing long position on the underlying security. This can be done until the long position is fully compensated. The same logic applies to trading in futures with an index as the underlying.

Does the prohibition extend to transactions leading to the creation or increase of a short position in all financial instruments?

The prohibition covers all transactions in financial instruments included in Section I of the First Schedule of Delegated Regulation (EU) 918/2012 of 5 July 2012 in connection with the formation of the net short position. Special transactions in financial instruments linked to indices and Exchange Traded Funds (ETFs) are included insofar as listed on the regulated market of the Athens Stock Exchange and the Alternative Market (ENA), for which the competent Supervisory Authority is the HCMC, representing a total of more than 5% of the value of the financial instrument.

Does the ban on short selling of share prohibit the sale of shares from being cleared by the market on the same day?

Yes.

Click on the above link for further details.