Greece bans short selling again 10 August 2015Athens Reporter: Drew Nicol
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Greece has instituted another four-week ban on short selling, but this time with a new exemption for market makers.
The European Securities and Markets Authority (ESMA) has acknowledged that since Greek financial markets are now open, market making activities are important providers of liquidity for the Greek shares, as well as for warrants, derivatives, index derivatives and exchange-traded funds related to Greek shares.
The renewal will run from 4 to 31 August and marks the fifth consecutive short selling ban for the Greek market.
The decision prohibits transactions in any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange and Multilateral Trading Facility.
The short selling ban was originally imposed by the Hellenic Capital Market Commission, under the EU Short Selling Regulation, and has been ongoing since 30 June.
In a statement on the decision, ESMA stated “that adverse developments which constitute a serious threat to market confidence in the Greek market still persist and that the proposed measure is appropriate and proportionate to address those threats”.
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