ESMA publishes opinion extending CNMV's temporary short selling prohibition

20/09/2017 | Clifford Chance

ESMA has published an opinion agreeing to the prolongation of an emergency short selling prohibition imposed by the Comisión Nacional del Mercado de Valores (CNMV) on net short positions in shares issued by Liberbank, S.A. (ISIN ES0168675090) under the Short Selling Regulation (SSR).

The prohibition entered into force on 12 June 2017 at 08:15 CET and was extended on 12 July 2017. The measure temporarily prohibits transactions in any shares, either directly or through related instruments and irrespective of the venue or market in which the transactions leading to those positions are conducted. The measure does not apply to market-making activities, trading in index-related instruments or short positions entered into to hedge positions on convertible bond or subscription rights. The measure applies to any natural or legal person, irrespective of their country of residence.

The CNMV notified ESMA of its intention to make use of its powers under the SSR to renew the current emergency measure and ESMA's opinion sets out that it considers that the circumstances are adverse events or developments which constitute a serious threat to market confidence and potential risk to financial stability in Spain, and as such the measures are appropriate, necessary and proportionate.

The short selling restriction will be applicable until the end of 30 November 2017.