ESMA takes action in view of the Greek crisis

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ESMA accepted the Hellenic Capital Market Commission (HMCM) proposal

Following the closure of banks and the Greek Stock Exchange as part of the emergency measures imposed in Greece in view of the critical situation in the country and the referendum on the international lenders’ proposal scheduled for Sunday, the Hellenic Capital Market Commission (HMCM) has proposed to the European Securities and Markets Authority (ESMA) a temporary ban of 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.”

ESMA accepted the proposal and has therefore issued its official opinion agreeing to the seven-day emergency short selling prohibition under the Short Selling Regulation.

According to the relevant ESMA announcement “the ban will take effect on 00:00:01 hours (CET) 30 June 2015 and remain in place until 24:00:00 (CET) on 6 July 2015 and temporarily prohibit transactions in any financial instrument that create, or increase, a net short position on any of the shares admitted to trading on the Athens Exchange and Multilateral Trading Facility “EN.A”.

In its statement ESMA also said that it “considers that adverse developments which constitute a serious threat to market confidence in the Greek market have arisen and that the proposed measure is appropriate and proportionate to address the above mentioned threats.”

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