Greece may be back in the short selling game
01 July 2013 Athens
Image: Shutterstock
It has been reported that Greece's capital markets regulator will lift a short selling ban now that the country's major banks have been recapitalised.
It was in May that the the Hellenic Capital Markets Commission (HCMC) 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, 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 ... threats that persist in Greece."
"[The authority] 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.”
It was in May that the the Hellenic Capital Markets Commission (HCMC) 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, 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 ... threats that persist in Greece."
"[The authority] 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.”
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