EUROPEAN UNION: CNMV Renews Short Selling Ban in Liberbank S.A Shares

Thursday July 13 2017

The European Securities and Markets Authority (ESMA) has issued an official opinion agreeing to the renewal of the emergency short selling prohibition, for a period of two months, by the Comisión Nacional del Mercado de Valores (CNMV) on net short positions in Liberbank, S.A. (Liberbank) shares under the Short Selling Regulation.

The measure is expected to enter into force on 12 July 2017 at 23:59 CET, and to be applicable until 12 September 2017 at 23:59 CET. It temporarily prohibits transactions in any shares, either directly or through related instruments and irrespective of the venue or market in which the transactions leading to those positions are conducted. The measure does not apply to market-making activities, trading in index-related instruments or short positions entered to hedge positions on convertible bonds or subscription rights.

The short selling measure applies to any natural or legal person, irrespective of their country of residence.

ESMA considers that the current circumstances related to Liberbank constitute an adverse scenario for the Spanish financial system, and that the proposed measure is appropriate and proportionate to address the threat in the Spanish financial markets.

Please see our previous article from 12 June 2017 on the initial one month ban on the short selling of Liberbank.

Please click on the above link for more information.