Spain to Extend Short-Selling Ban 3 Months From November
Spain plans to extend a ban on short-selling for three months from the start of November as regulators take into account the “exceptional situation” facing the country’s banks.
Authorities will first extend the ban to the end of the month after it expires on Oct. 23, the markets regulator, known as CNMV, said in a statement sent by email. CNMV will also begin procedures to notify the European Securities & Markets Authority of its intention to extend the prohibition for a further three months, the regulator said.
CNMV said it was taking into account the “exceptional situation” facing the banking industry because the process of restructuring it is still incomplete, the regulator said. In this context, lifting the bank on short-selling would “add uncertainty,” CNMV said.
Short-sellers sell borrowed shares with plans to buy them back later at a lower price, a practice some politicians and investors blame for roiling markets. The ban can be lifted at any time if market conditions allow, the regulator said.
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