Greek regulator fines funds over naked short selling
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Greek regulator fines funds over naked short selling 29 June 2015Athens Reporter: Mark Dugdale
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Greece’s securities regulator has fined dozens of funds for naked short selling.
The Hellenic Capital Markets Commission issued fines to hedge funds including Tosca Master Fund, Hadron Alpha Select and Lombard Odier Darier Hentsch & Cie for failing to borrow shares before selling them short.
The fines, ranging from €10,000 to €40,000, were levied for the naked short selling of stocks in Greek banks Eurobank Ergasias Bank, Alpha Bank and National Bank of Greece. The securities regulator announced the fines in May.
The Greek financial system was on the brink of chaos over the weekend following the European Central Bank’s decision not to extend emergency funding.
Greece is due to pay €1.6 billion to the International Monetary Fund on 30 June, as part of the bailout it was paid following the financial crisis. The Greek government and eurozone finance ministers failed to renegotiate the terms of a new bailout package.
As part of capital controls imposed over the weekend, ATM withdrawals have been capped at €60 and banks are expected to be closed for at least a week.
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