Italy tightens short selling rules
14 July 2011 Milan
Image: Shutterstock
Consob, the Italian regulator, has approved a new disclosure regime on short sales.
Investors must now report their material downward positions on shares traded on the Italian regulated markets to Consob.
This requirement aligns Italian law to the regimes already in force in other major European countries, firstly Germany. This measure strengthens Consob supervisory powers in the current high volatile market context.
Particularly, any net short positions on shares of companies listed in Italy shall be reported to Consob whenever they trigger certain thresholds. The first reporting obligation shall apply when the net short position becomes equal to, or exceeds 0.2 per cent of the issuer’s share capital. The following obligations apply in connection with any variation equal to or exceeding 0.1 per cent of the share capital.
The new rule will apply until 9 September 2011.
Investors must now report their material downward positions on shares traded on the Italian regulated markets to Consob.
This requirement aligns Italian law to the regimes already in force in other major European countries, firstly Germany. This measure strengthens Consob supervisory powers in the current high volatile market context.
Particularly, any net short positions on shares of companies listed in Italy shall be reported to Consob whenever they trigger certain thresholds. The first reporting obligation shall apply when the net short position becomes equal to, or exceeds 0.2 per cent of the issuer’s share capital. The following obligations apply in connection with any variation equal to or exceeding 0.1 per cent of the share capital.
The new rule will apply until 9 September 2011.
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