The FSA has decided to assist the Consob by temporarily prohibiting the short selling of the above financial instruments on all UK trading venues on which they are traded. As the competent authority in the UK, the FSA is doing this under the provisions of Article 26(4) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps (SSR). This measure is effective for the duration of 27 February, 2013.
The regulator has made this decision because of significant price falls in these instruments. These price movements have crossed one of the thresholds set out in Article 23 of Commission Delegated Regulation (EU) No 918/20121 (DR) as being a significant fall in that type of financial instrument. In the FSA's opinion, a temporary prohibition in short selling is justified to prevent disorderly falls in their prices. The FSA has decided to assist the Consob by imposing a similar prohibition in these instruments on all UK trading venues.
This prohibition does not extend to those market-makers who are legitimately undertaking market-making activities in these instruments and for which they have previously notified the FSA of their intention to use the market maker exemption in these instruments. This exception is in line with the requirements of Article 23(3) of the SSR.
FSA may consider extending the duration of this prohibition under the provisions of Article 23(2) should either the price of the instruments fall significantly, in accordance with the Delegated Regulation while this prohibition is in place, or the Consob chooses to extend the measure it has imposed. FSA will publish further information as necessary under the requirements of Article 25.
Full press release
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