No Naked Norwegians
02 July 2010 Oslo
Image: Shutterstock
As reported on RBC Dexia's Market News Flash - The Norwegian Parliament has passed changes to the Norwegian Securities Trading Act on naked short selling.
The new amendment entered into force on July 1, 2010 and extends the prohibition on naked short selling to apply to all types of investors, including private individuals, corporate entities and intermediaries. The prohibition applies to all investors equally, irrespective of their home state or country of origin.
The prohibition applies to all financial instruments listed on Norwegian regulated markets, including transferable securities, units in open-ended collective investment undertakings as well as money market instruments. Investors are not entitled to sell such instruments which they do not own, without having access to the relevant instrument in a manner which ensures delivery of the shorted instruments at settlement date.
In addition the Financial Supervisory Authority of Norway have been given authority to impose a temporary ban on all forms of short selling under market conditions where such transactions could disrupt the stability or integrity of the market.
The new amendment entered into force on July 1, 2010 and extends the prohibition on naked short selling to apply to all types of investors, including private individuals, corporate entities and intermediaries. The prohibition applies to all investors equally, irrespective of their home state or country of origin.
The prohibition applies to all financial instruments listed on Norwegian regulated markets, including transferable securities, units in open-ended collective investment undertakings as well as money market instruments. Investors are not entitled to sell such instruments which they do not own, without having access to the relevant instrument in a manner which ensures delivery of the shorted instruments at settlement date.
In addition the Financial Supervisory Authority of Norway have been given authority to impose a temporary ban on all forms of short selling under market conditions where such transactions could disrupt the stability or integrity of the market.
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