Greece extends short selling ban yet again 01 May 2013Athens Reporter: Georgina Lavers
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Greece's capital markets regulator has decided to extend its ban on short selling until the end of July, stating that the decision was due to the country’s recapitalisation plan.
In a statement, the Hellenic Capital Markets Commission (HCMC) said that its board considered “the process of recapitalising the lenders” in its decision—referring to the €50 billion set aside to inject capital into the country's four big banks, and to scrap some smaller lenders.
The European Securities and Markets Authority (ESMA) published its opinion on the emergency measure, stating that it was appropriate and proportionate in relation to the country’s current situation.
“ESMA considers that the measure which is targeted at credit institutions admitted to trading on the Athens Stock Exchange remains appropriate and proportionate to address the above mentioned threats that persist in Greece. ESMA considers that the duration of the measure is justified and appreciates the HCMC’s statement in its notification of intent whereby the measure may be lifted during the period of enforcement of the measure, if appropriate.”
HCMC’s previous ban, introduced in November 2012 for three months, was extended in February.
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