FRANCE: European Securities and Markets Authority (ESMA) say short-selling ban could be extended

Record ID: 1530464

  • Title: FRANCE: European Securities and Markets Authority (ESMA) say short-selling ban could be extended
  • Date: 13th August 2011
  • Summary: PARIS, FRANCE (AUGUST 12, 2011) (REUTERS) VARIOUS EXTERIORS OF EUROPEAN SECURITIES AND MARKETS AUTHORITY (ESMA) VARIOUS OF ESMA CHAIRMAN STEVEN MAIJOOR ESMA AND EUROPEAN FLAGS MAIJOOR ARRIVING FOR INTERVIEW (SOUNDBITE) (English) ESMA CHAIRMAN, STEVEN MAIJOOR SAYING: "In the past weeks, what we have seen is obviously a revision in the outlook by market participants. There has been a clear lowering of the stock price, and this is consistent with the revision of the views on the economic outlook. At the same time, what we have seen in the past days is much more volatility and some of this volatility being driven by rumours. And that is precisely the reason for these countries to implement the further measures regarding short-selling and regarding short positions." MAIJOOR IN INTERVIEW (SOUNDBITE) (English) ESMA CHAIRMAN, STEVEN MAIJOOR SAYING: "Well of course there is so much more information now going on. Not only the short-selling measures are now implemented, but we think that in some cases, short-selling combined with rumours, false rumours, can be a negative practice and we need to act against that." MAIJOOR IN INTERVIEW (SOUNDBITE) (English) ESMA CHAIRMAN, STEVEN MAIJOOR SAYING: "One of the problems we're facing as European regulators is that at this stage, we don't have a European regulation regarding short-selling. It's extremely important that this regulation is decided upon as quickly as possible by parliament and council and that will give us better powers to make short-selling measures more effective. But we are convinced that what we have done in these circumstances are effective measures." FLAG FOR EUROPEAN SECURITIES AND MARKETS AUTHORITY (SOUNDBITE) (English) ESMA CHAIRMAN, STEVEN MAIJOOR SAYING: "Well there are no concrete plans at this stage for other countries but I cannot rule out that that might change in the coming days or weeks or months." MAIJOOR IN INTERVIEW
  • Embargoed: 28th August 2011 12:00
  • Keywords:
  • Location: France, France
  • Country: France
  • Topics: Economy
  • Reuters ID: LVA63YPRLSVP989Q2FX9IB6AV3P3
  • Aspect Ratio: 4:3
  • Story Text: The chairman of the European Securities and Markets Authority (ESMA) said on Friday (August 12) that there were no current plans to expand a ban on short-selling financial shares to other countries, but that such a move could not be ruled out, and that there needed to be europe-wide regulation.
    In an interview with Reuters TV, ESMA Chairman Steven Maijoor added that the curbs would be in place for "a while" but that they would not be permanent.
    The decision to ban such trading comes after European bank shares were battered this week, in a sell-off which saw global stocks hit an 11-month low.
    "In the past weeks, what we have seen is obviously a revision in the outlook by market participants. There has been a clear lowering of the stock price, and this is consistent with the revision of the views on the economic outlook. At the same time, what we have seen in the past days is much more volatility and some of this volatility being driven by rumours. And that is precisely the reason for these countries to implement the further measures regarding short-selling and regarding short positions," said Maijoor.
    "Well of course there is so much more information now going on. Not only the short-selling measures are now implemented, but we think that in some cases, short-selling combined with rumours, false rumours, can be a negative practice and we need to act against that."
    The ESMA Chairman said it was the institution's responsibility to act against such rumours and called on European policy makers to urgently adopt a plan for European-wide rules on short-selling.
    "One of the problems we're facing as European regulators is that at this stage, we don't have a European regulation regarding short-selling. It's extremely important that this regulation is decided upon as quickly as possible by parliament, and council and that will give us better powers to make short-selling measures more effective. But we are convinced that what we have done in these circumstances are effective measures," he said.
    For the time being, France, Italy, Spain and Belgium will ban the short-selling of stocks, with French market regulator AMF saying it would ban short-selling of financial shares for a 15-day period effective immediately.
    "There are no concrete plans at this stage for other countries, but we cannot rule out that that might change in the coming days and weeks and months," said Maijoor.
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