The Hellenic Capital Markets Commission announced an extension of the ban on short selling for another three months. This applies to the shares listed on the Athens Stock Exchange.
The decision, applicable from Nov. 1 2012, is due to exceptional circumstances and the prevailing macroeconomic situation of the country and in the Greek capital markets, notably the recapitalization of Greek banks and the need to ensure smooth functioning of the market.
The decision follows the European Unions publication last month of the delegated acts for short selling in the Official Journal of the EU. The publication follows the decision of the Council and European Parliament not to raise objection to the draft delegated act submitted by the European Commission. Financial Markets Commissioner Michel Barnier said: The publication of the delegated acts adopted by the Commission gives legal certainty to market participants and regulators and will ensure that as of 1 November, the ban on naked sovereign CDS is applied in a uniform way.
(JDC)