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24 February 2012

Consob: Restrictions lifted on net short positions on financial securities


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On 24 February 2012, the restriction on short sales that had been adopted on 12 August 2011 and subsequently extended was finally lifted. This provision entailed the prohibition from taking or increasing short positions on shares in the financial segment, including intraday.


Consob decided not to extend further the prohibition to assume or increase short positions on shares in the financial segment. This decision is in line with that already decided by other European authorities which, in the past, had taken similar steps and takes into consideration current market conditions.

The other measures adopted at the time in relation to shares listed on Italian regulated markets remain in any case in force for an unspecified period of time, introducing into the Italian order - ahead of forecasts - some of the restrictive measures contained in the European Community Regulation on short sales and some aspect of credit default swaps that will come into force on 1 November. These measures consist of:

  • the disclosure obligation to Consob of significant short positions (above 0.2 per cent in the share capital; resolution no. 17862 of 10 July 2011);
  • the prohibition of making "nude" short sales, i.e. those not backed by the availability of the securities at the time of order, regardless of the place of trading (Resolution no. 17993 of 11 November 2011).

It is also noted that the European Community Regulation envisages the possibility, if certain conditions are met, of taking emergency measures, including the prohibition to assume or increase short positions on shares of the financial segment. This prohibition can in any case be reintroduced if market conditions so require and, once up and running, under the scope of the measures envisaged by European Community Regulation.

Consob will continue to monitor systematically the regular satisfaction of obligations to deliver shares during settlement.

Press release



© Consob - Commissione Nazionale per le Società e la Borsa


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