With resolution No. 16781 of 29 January 2009, Consob resolved to extend until 12pm on 28 February 2009 the prohibition on short sales, without introducing amendments to the previous resolution of 30 December 2008.  

According to resolution No. 16765 of 30 December 2008, the sale of shares, which are listed and traded on a regulated market, issued by i) banks and insurance companies or by the relevant holdings and (ii) companies increasing their capital must be supported, from the moment of the order up and until the date of the settlement of the transaction, by both the availability and the ownership of the relevant securities.  

With reference to the shares of companies increasing their capital, the prohibition applies starting from the day following that of the approval of the capital increase by the company’s managing or supervisory board, up and until the day of delivery of the shares issued following the capital increase.  

The list of the companies included in the group under (i) above is attached to the text of the resolution No. 16765.  

Therefore, both "covered" and "uncovered" short positions in shares of companies mentioned under (i) and (ii) above are still caught by the restrictions.  

With reference to the shares of other listed companies, the prohibition is limited to short selling on "uncovered position"; therefore, the seller must cover its position (through own shares or borrowed shares) at the time when the order is made, notwithstanding the delivery of the shares to the buyer can take place within three days from the order.  

These provisions shall not apply to the activity carried out, in the exercise of their own functions, by market makers, nor to the activity carried out in regulated markets in the exercise of their own functions by specialists, as defined in the rules of the regulated markets organised and managed by Borsa Italiana S.p.A., and by intermediaries acting in the performance of a liquidity contract (liquidity providers).  

Consob will be carrying out consultations with market operators to assess if and when it should modify and/or cancel the relevant prohibition.