Italy’s Consob extends shorting ban 04 October 2016Rome Reporter: Drew Nicol
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The Italian regulator Consob has extended the short selling ban on Banca MPS shares until 5 January 2017.
The ban, which has been in force since 7 July and was originally due to run out on 7 October, also applies to subscription rights and convertible bonds.
In order to facilitate potential capital actions, the prohibition has been modified to affect subscription rights, convertible bonds and other financial instruments that give claims to Banca MPS shares to be issued, according the regulator. The other terms of the ban remain unchanged.
The ban applies to all transactions, including BMPS single stock derivatives, irrespective of where they have been carried out, such as on an Italian or foreign trading venue or over-the-counter.
The European Securities and Markets Authority endorsed the decision, stating: “The current circumstances related to BMPS constitute adverse events or developments which constitute a serious threat to market confidence in Italy and that the proposed measure is appropriate and proportionate to address the threat to Italian financial markets.”
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