The Athens Exchange (ATHEX) has approved the fail coverage product introduced by the Athens Derivatives Exchanges (ADEX), and plans to enhance its own buy-in procedure too.
According to BNP Paribas in Athens, the current buy-in procedure is imposed on T+3 or T+4 after a trade has failed and been returned to the broker, who then proceeds with the buy-in in order to cover the short position. “The Athens Exchange now wants to enhance the buy-in procedure so that the trade booked on settlement date (SD) or SD+1 to cover the short position will have the rights of SD-3 or SD-4 respectively,” explains a BNP Paribas spokesman in Athens.
The Athens Exchange has also proposed to the Hellenic Capital Market Commission that it modify its short selling decision, to state that the price included in the trading system can be greater or equal to the price of the last transaction carried out.