ITALY: CONSOB issues reminder of application of Italy short selling measures

Monday June 9 2014

The Italian markets regulator CONSOB has issued a reminder of the application of the Italy short selling rules during the period of a capital increase.

CONSOB reminds investors of the requirement of timely compliance by all parties, both natural persons and legal entities, Italian and foreign, with the prohibition on making short sales where securities are not available (“naked”), as contained in the EU Regulation on short selling in the markets, organised and managed by Borsa Italiana spa.

The reminder has been made with reference to the share capital increase of Banca Monte dei Paschi di Siena, and more generally to the strongly diluting effect of a share capital increase. The circumstance leads to a high risk that during the offering period for the new shares a serious overvaluation of the market price of the shares occurs, with respect to their theoretical value.

The communication also warns operators admitted to trading on the MTA and Idem markets to comply with the obligation to deliver shares sold during liquidation as established by the regulation of markets organised and managed by Borsa Italiana.

Consob will carefully monitor the trend of the shares of Banca Mps on the market during the offer period.

Click on the above link for the press release.