European stock exchange regulators may not lift the ban on short selling until the end of September.
A representative of Spanish financial markets regulator CNMV told that all countries were negotiating with the European Sales and Marketing Association (ESMA) and that final decision hadn’t been made yet.
French regulators informed that the decision would be made public upon completion of today’s session. Belgium reminded that the imposed ban was open-ended, so there was no need to prolong it anyway.
On August 12 four European regulators prohibited short selling of certain securities to prevent high volatility which hit the market after announcement of possibility of France’s sovereign rating being downgraded. France banned short selling on shares of 11 financial companies, ban effective for 15 days. Spain did the same for 16 securities for the same term. Belgium, as it was told earlier, put an open-ended ban for 4 financial instruments. As for Italy, its prohibition covers 29 shares of banks and insurance companies.
Source: RBC
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