France, Italy, Spain, Belgium to Impose Short-Selling Curbs
France, Italy, Spain and Belgium plan to enact bans on short selling or on short positions, the European Securities and Markets Authority said today.
“Some authorities have decided to impose or extend existing short-selling bans in their respective countries,” ESMA said in a statement on its website. “They have done so either to restrict the benefits that can be achieved from spreading false rumors or to achieve a regulatory level playing field, given the close inter-linkage between some EU markets.”
Information on the measures, which take effect tomorrow, will be posted on the relevant regulators’ websites, ESMA said.
France’s stock market regulator said that rumors had been circulating about French financial companies and that the spreading of “unfounded information” may lead to punishment. The market turbulence has led Turkey to curb short sales and threaten “severe penalties” for stock manipulation, joining nations from Greece to South Korea in trying to stem bearish bets after the worst tumble in global shares since 2008.