ESMA Continues Ban On Short Selling as Greece Uncertainty Lingers

Following on from an official opinion that was released a week ago, the European Securities and Markets Authority (ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term) has decided to extend a ban on short selling.

The decision prohibits investors to trade in “any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and Multilateral Trading Facility.” The ban will carry through until midnight July 13(CET).

In a statement, ESMA said that it “considers that adverse developments which constitute a serious threat to market confidence in the Greek market still persist and that the proposed measure is appropriate and proportionate to address the above mentioned threats.”

More explicitly, following a ‘no’ vote in the weekend’s referendum on whether the Greek government should accept the terms of a bailout package from its creditors, the fate of the Greek financial system remains uncertain.

The ECB has agreed to continue Emergency Liquidity Assistance (ELA) to prop up the Greek banks, while emergency talks between Greece and its international ‘partners’ stagger into a seemingly impossible final round. Capital controls continue and preparations for a likely Grexit are underway.