ESMA Short Selling Ban to Take Effect Midnight CET

As Greece heads further down the path towards a Grexit, governments and markets are reacting.

The European Securities and Markets Authority (ESMA) have also taken action. In an official opinion today, the European financial watchdog announced a seven-day emergency short selling prohibition.

The prohibition, proposed by the Hellenic Capital Market Commission (HMCM) under the Short Selling Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, will temporarily ban transactions in “any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange and Multilateral Trading Facility."

The ban accompanies other emergency measures imposed by Alexis Tsipras’ government, including capital controls on banks and the closure of the Greek Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term.

In a statement, ESMA said that it “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 and proportionate to address the above mentioned threats."

The ban will take effect at 00:00:01 hours (CET) June 30, 2015 and remain in place until 24:00:00 (CET) on July 6, 2015.