Italian regulatory body Consob has prohibited naked shorting of all Italian securities, Financial Times reports. The ban, which follows a week of heightened market volatility, comes into effect on December 1. Investors will also be required to report to the Consob all bets on Italian shares exceeding 0.2 per cent of the value of the security.
The shorting prohibition will be applicable to both foreign and Italian investors and cover all Italian-regulated shares trading, comprising shares listed on the Chi-X Europe and Bats Europe trading platforms in London. Market makers, however, are exempt from the ban. Consob has also extended the ban on shorting of Italian financial and insurance shares till January 15.
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