Greece adds short selling ban to the mix
01 July 2015 Athens
Image: Shutterstock
A complete ban of short selling was enforced across Greece on 30 June as the country attempts to prevent its economy from collapsing.
The Hellenic Capital Markets Commission issued the temporary ban of all short selling of any financial instruments on the Athens Exchange, as well as the Multilateral Trading Facility of the Alternative Market of the Athens Exchange.
The ban will be in place between 30 June and 6 July, to coincide with the decision to close all Greek banks in the same period.
The European Securities and Markets Authority backed the move, given the “adverse developments which constitute a serious threat to market confidence” in Greece.
The Greek financial system was on the brink of chaos over the weekend following the European Central Bank’s decision not to extend emergency funding.
Greece failed to pay €1.6 billion to the International Monetary Fund on 30 June, as part of the bailout it was given following the eurozone crisis in 2010.
The Hellenic Capital Markets Commission issued the temporary ban of all short selling of any financial instruments on the Athens Exchange, as well as the Multilateral Trading Facility of the Alternative Market of the Athens Exchange.
The ban will be in place between 30 June and 6 July, to coincide with the decision to close all Greek banks in the same period.
The European Securities and Markets Authority backed the move, given the “adverse developments which constitute a serious threat to market confidence” in Greece.
The Greek financial system was on the brink of chaos over the weekend following the European Central Bank’s decision not to extend emergency funding.
Greece failed to pay €1.6 billion to the International Monetary Fund on 30 June, as part of the bailout it was given following the eurozone crisis in 2010.
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