The Autorité des Marchés Financiers (AMF) in France has announced an immediate ban on the the creation or increase of short net positions with immediate effect.
In the light of the outbreak of Coronavirus and its consequences on the economy and financial market in France, the Autorité des marchés financiers has decided to implement a 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.
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 hours until 16 April 2020 at midnight.
The ban does not concern market making activities carried out by persons who are exempted under article 17 of the Short Selling Regulation.
This applies to transactions in shares admitted to trading to French Trading Venues (EURONEXT PARIS, EURONEXT GROWTH PARIS, EURONEXT ACCESS PARIS), as well as 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 Nº 918/2012, except index-related instruments on indices not composed mainly by shares affected by the prohibition.
This measure is effective from 18 March 2020 (at midnight) until the end of trading on 16 April 2020.
The exact scope of this measure is specified in the statement issued by AMF.
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