On 11 August 2011, we advised that the European Securities and Markets Authority (ESMA) announced that Belgium, France, Italy and Spain had implemented bans on short selling, to take effect on 12 August 2011. The bans in France, Italy and Spain were to apply for fifteen days while the ban in Belgium was to apply indefinitely. ESMA has continued to coordinate discussions with national regulators on the content and timing of the short selling measures and announced on 25 August 2011 that France, Italy and Spain had extended their bans on short selling, while Greece and Belgium confirmed that their bans remain in place.

The bans introduced apply to specific financial stocks. The bans in Italy and Spain will remain in place until 30 September 2011, while the French ban will remain in place until 11 November 2011 at the latest. The Greek ban is in place until 7 October 2011. The national regulators have agreed to cooperate under the coordination of ESMA and have agreed to keep the measures under review.

ESMA has published an updated list of measures adopted by competent authorities on short selling, which may be accessed at the following link: Short Selling Measures.

Our previous update on the introduction of the short selling bans may be accessed here.

If there are any particular aspects of the short selling measures which you would like clarification or advice on, please get in touch with your usual Asset Management and Investment Funds Group contact or any of the contacts listed in this email.