France, Italy, Spain and Belgium have banned short-selling of shares in banking and insurance stocks following recent stock market volatility.
The bans follow large swings in European bank stocks in particular, but insurance company share prices have been subject to the same roller-coaster. French insurer AXA’s stock, for example, dropped 10% in trading on Wednesday.
France’s securities regulator, AMF, has banned short selling in 11 banking and insurance stocks for 15 days. The insurance companies include AXA, Euler Hermes, Paris Re and SCOR.
Insurer Mapfre is on Spanish regulator CNMV’s 16-strong ban list, featuring mostly banks.
Belgium’s FSMA has extended its existing ban on ‘naked’ shorting (short-selling without owning the shares)of financial stocks to all forms of short selling. Insurer Ageas is on its list.
Italy’s ban covers 29 companies, including banking and insurance stocks.
Greece introduced a short-selling ban on 8 August.
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