European Watchdog Says Short-Selling Ban Exceptional, Will End

Short-selling bans in Europe will be lifted when markets “return to normal,” said Steven Maijoor, chairman of the European Securities and Markets Authority.

Italy and Spain yesterday extended temporary bans on short selling of financial shares that were introduced last month to stem market volatility. The Spanish ban will remain “until the market conditions allow it” to be lifted, according to the country’s financial regulator. Italy’s restriction, and another enacted by France in August, will both last until Nov. 11. Paris-based ESMA coordinates the work of national regulators in the 27-nation European Union.