Spain and Italy ban short selling

Securities regulators in Spain and Italy both instituted short-selling bans Monday as financial markets tumbled.

The move is designed to limit the downward pressure on markets by preventing investors from betting against shares of certain companies.

The ban in Italy applies only to short positions in shares of banks and insurance companies, according to the Commissione Nazionale per le Società e le Borse, or CONSOB.

Spain's Comisión Nacional del Mercado de Valores (CNMV) banned short positions in shares of all companies under its purview.

Both bans are temporary.

In a statement, CNMV said European shares have been hit with "extreme volatility" that might cause the "disorderly functioning" of financial markets.

Regulators in Italy and Spain, as well as France and Belgium, imposed a temporary short-selling ban in August 2011, at the height of the last major flare-up in the eurozone debt crisis.

Read Full Article from CNNMoney

- Posted: 2012-07-23 12:25:54

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