ITALY: CONSOB Publishes Updated FAQs on Temporary Ban on Net Short Positions

Monday October 10 2016

The Commissione Nazionale per le Società e la Borsa (CONSOB) has published a series of responses to questions on the interpretation of the short selling ban on Banca MPS shares adopted by CONSOB on 6th July 2016, amended and extended on 4th October 2016.

Answers to the following questions are included in the updated version:

• Who is subject to the prohibition?
• When will the prohibition come into force and for how long will it apply?
• To which financial instruments does the prohibition apply?
• What does the investor need to check before entering into a transaction in BMPS shares or related instruments?
• Are intraday net short positions allowed?
• What should be done by an investor who opened a net short position before the entry into force of the prohibition?
• Does the prohibition apply to transactions in the concerned financial instruments conducted outside an Italian regulated market?
• Is an investor allowed to create a net short position in BMPS shares by using derivatives?
• Are trades in index-related instrument that contain BMPS shares allowed?
• If a fund manager acts on behalf of multiple funds, should the calculation of the net short position be made at the fund-specific or manager level or both? What about groups?
• Are market makers exempted?
• Enforcement – What would be the consequences of non-compliance with the prohibition?

Click on the link above for further details.