Turkey bans six major investment banks from shorting
07 July 2020 Istanbul
Image: Seqoya/Shutterstock.com
Turkey's Borsa Istanbul has applied a temporary short selling ban on six major investment banks that failed to notify the country’s regulator of short positions taken once the blanket ban was lifted in late June.
Barclays Capital Securities, Credit Suisse Securities Europe and Merrill Lynch International are prohibited from taking short positions on the BIST 30 Index, which includes Turkey’s largest companies, for three months, as of 6 July.
Under the same terms, Goldman Sachs International, J.P. Morgan Securities and Wood and Company Financial Services are unable to conduct short sales for one month.
In outlining its ruling the Turkish stock exchange noted that the six firms had failed to make the required notifications for short selling transactions performed on 1 July.
“It is highly requested that our investors and investment institutions show the necessary care and sensitivity in compliance with the legislation,” the exchange stated in a written statement.
The transactions were executed shortly after Turkey’s capital markets board ended a ban on the short selling for the top 30 shares on the Istanbul Stock Exchange that had been in place since February to protect the market during the worst of the COVID-19 market volatility seen in Q1.
Barclays Capital Securities, Credit Suisse Securities Europe and Merrill Lynch International are prohibited from taking short positions on the BIST 30 Index, which includes Turkey’s largest companies, for three months, as of 6 July.
Under the same terms, Goldman Sachs International, J.P. Morgan Securities and Wood and Company Financial Services are unable to conduct short sales for one month.
In outlining its ruling the Turkish stock exchange noted that the six firms had failed to make the required notifications for short selling transactions performed on 1 July.
“It is highly requested that our investors and investment institutions show the necessary care and sensitivity in compliance with the legislation,” the exchange stated in a written statement.
The transactions were executed shortly after Turkey’s capital markets board ended a ban on the short selling for the top 30 shares on the Istanbul Stock Exchange that had been in place since February to protect the market during the worst of the COVID-19 market volatility seen in Q1.
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