Spain’s stock-market regulator lifts short-sale ban on financial stocks

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The CNMV, Spain’s stock market regulator, lifted a ban on short selling of financial stocks.     The ban has been in force since August, 2011 because of extreme market volatility and it affected shares in 16 financial companies traded on the Spanish stock exchange.

France, Belgium, Spain and Italy moved to ban short-selling in August in effort to stabilize markets volatility after the credit crisis of 2008.      However, measures taken by the European Union to tighten budget control and European Central Bank’s longer-term financing operations reduced market volatility in recent weeks.     France and Belgium lifted their bans this week.

The CNMV plans to keep a ban on the practice of net naked short selling, where investors make a commitment to sell shares, but without actually borrowing the stock.    Further, the CNMV requires investors who hold significant short positions on stocks to disclose these positions.

Anna Timone (195 Posts)

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