France: Short selling ban extended
Note: This announcement, originally published on 19 March 2020, has been updated as the AMF has extended the validity of the short selling ban from 16 April 2020 until 18 May 2020. The changes have been highlighted.
Clearstream Banking1 informs customers that the Autorité des marchés financiers (AMF) has decided effective
immediately
to ban the creation or increase of short net positions.
Backgound
Given that the current exceptional circumstances represent a serious threat to market confidence, the AMF Chairman has decided this ban pursuant to Article L 421-16 II of the code monétaire et financier and Article 20 of the European Short Selling Regulation, for an initial period of 20 days. The AMF Board has already decided to extend this period for a further 10 days, which leads to a ban for 30 days in all. This decision has been forwarded to the European Securities and Markets Authority (ESMA). It will be the subject of an opinion from ESMA, which will be published on its website.
Impact on customers
This ban to create all short net position or increase of all short net position applies to persons established or resident in France or abroad when the position involves a share admitted to trading on a trading venue in France and the share falls under the jurisdiction of the AMF within the meaning of the regulation. The ban is applicable from 18 March 2020 at 00:00 until 18 May 2020 at 23:59.
The ban does not concern market making activities carried out by persons who are exempt under article 17 of the Short Selling Regulation.
Further information
We will continue to monitor the situation, and will inform customers when further news is received from the market.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.