Short-selling curbs are once again in effect in European markets today, with regulators seeking to limit panic selling in a selection of hard-hit stocks.
Regulators in France, Belgium and Italy have temporarily prohibited short-selling in certain stocks. The U.K.’s Financial Conduct Authority has reciprocated the bans in the U.K. market.
Citing the drop in share prices over the past few days, France’s Autorité des Marchés Financiers imposed an emergency ban on short-selling in 92 stocks.
Belgium’s Financial Services and Markets Authority and Italy’s Consob also imposed their own restrictions.
Under European rules, regulators can ban short-selling in liquid stocks when they drop more than 10%, and by 20% for illiquid stocks.
Yesterday, the European Securities and Markets Authority also stepped up surveillance of short-selling by temporarily requiring reporting of net short positions of at least 0.1% of issued capital.