Greece bans short selling

Greece bans short selling

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The board of directors for the Hellenic Capital Market Commission (HCMC) Board of has banned short selling.

The ban applies to positions on the Athens Exchange and the Multilateral Trading Facility of the Alternative Market of the Athens Exchange.

"In view of the issuance of a legislative act providing for a bank holiday in Greece
from June 28 2015 until the July 6 and the consecutive decision to close down,
for the same period, the stock and bond markets, to impose a temporary prohibition of
transactions in any financial instrument which would create a short position of the shares
admitted to trading on the Athens Exchange," the press release on its website states.

The temporary prohibition is imposed in accordance with Article 20 of the Regulation (EU)
No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short
selling and certain aspects of credit default swaps (OJ L 86/1, 2012).

The measure shall apply for a period of seven days and shall be in force until 24:00:00 (CET) on 6th July 2015.

The decision came further to the official opinion issued by Esma.

"Esma considers that adverse developments which constitute a serious threat to market confidence in the Greek market have arisen and that the proposed measure is appropriate," the Esma statement read.

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