Greece: Measures Implemented on National/EU Level in Regulated Markets due to the COVID-19 Pandemic
Greece: Measures Implemented on National/EU Level in Regulated Markets due to the COVID-19 Pandemic
On national level:
On 17 March 2020, the Hellenic Capital Market Commission (“HCMC”) decided to prohibit short sales and transactions other than short sales which create or increase the net short positions in shares admitted to trading on the regulated market of the Athens Exchange, irrespective of the venue where the transaction is executed, subject to certain exceptions. The temporary prohibition includes sales of shares covered by subsequent intraday purchases. The measure is also applicable to all related instruments relevant for the calculation of the net short position determined in Annex I, part 1, articles 5 and 6 of Commission Delegated Regulation EU 918/2012.
The abovementioned prohibition is a prudential measure, which under the extraordinary circumstances, due to the spread of COVID-19, was deemed necessary by the HCMC in order for the latter to be in a position to monitor the developments in the Greek market.
On EU level:
On 16 March 2020, the European Securities and Markets Authority (“ESMA”) issued a decision imposing temporary requirements to holders of net short positions in shares traded on an EU regulated market to notify the relevant national competent authority in case their position reaches or exceeds 0.1% of the issued share capital after the entry into force of the decision. Lowering the reporting threshold for a three-month period, is a precautionary measure implemented by ESMA due to the exceptional circumstances linked to the ongoing COVID-19 pandemic and the serious threat that it has effected to markets.
ESMA, in cooperation with the national supervisory authorities, continues to closely monitor the developments in financial markets arisen by the pandemic and uses its power in order to ensure the orderly functioning of the European markets, the financial stability and the investor protection. You may find the abovementioned ESMA’s decision both on ESMA’s here, on HCMC’s website here, and the HCMC’s announcement on HCMC’s website here.
On national level:
On 17 March 2020, the Hellenic Capital Market Commission (“HCMC”) decided to prohibit short sales and transactions other than short sales which create or increase the net short positions in shares admitted to trading on the regulated market of the Athens Exchange, irrespective of the venue where the transaction is executed, subject to certain exceptions. The temporary prohibition includes sales of shares covered by subsequent intraday purchases. The measure is also applicable to all related instruments relevant for the calculation of the net short position determined in Annex I, part 1, articles 5 and 6 of Commission Delegated Regulation EU 918/2012.
The abovementioned prohibition is a prudential measure, which under the extraordinary circumstances, due to the spread of COVID-19, was deemed necessary by the HCMC in order for the latter to be in a position to monitor the developments in the Greek market.
On EU level:
On 16 March 2020, the European Securities and Markets Authority (“ESMA”) issued a decision imposing temporary requirements to holders of net short positions in shares traded on an EU regulated market to notify the relevant national competent authority in case their position reaches or exceeds 0.1% of the issued share capital after the entry into force of the decision. Lowering the reporting threshold for a three-month period, is a precautionary measure implemented by ESMA due to the exceptional circumstances linked to the ongoing COVID-19 pandemic and the serious threat that it has effected to markets.
ESMA, in cooperation with the national supervisory authorities, continues to closely monitor the developments in financial markets arisen by the pandemic and uses its power in order to ensure the orderly functioning of the European markets, the financial stability and the investor protection. You may find the abovementioned ESMA’s decision both on ESMA’s here, on HCMC’s website here, and the HCMC’s announcement on HCMC’s website here.
