British regulators are backing up a temporary short selling ban on several Italian stocks by the country’s regulator, known as CONSOB.
The Italian regulator has banned short selling in shares of Banco Popolare, Mediolanum, Banca Carige, and INTESA.
On Wednesday, the UK Financial Services Authority (FSA) said that it would adopt a temporary prohibition for trading in these shares on all UK trading venues, too.
“We have made this decision because of significant price falls in these instruments,” said the FSA, adding that in its opinion “a temporary prohibition in short selling is justified to prevent disorderly falls in their prices. We have decided to assist the CONSOB by imposing a similar prohibition in these instruments on all UK trading venues.”