[Newsflash n. 70]

Due to the strong market turbulences triggered in the last days by the Covid-19 pandemic, Consob has introduced a prohibition of net short positions (short selling and other bearish operations) for three months (Resolution n. 21303 of March 17, 2020), following the positive opinion of ESMA.

For the first time the ban applies to all the traded shares on the Italian regulated market.

The restriction, which follows other measures already adopted on 13 and 17 March (see our Newsflash n.69), prohibits any form of bearish speculative operation, even through derivatives or other financial instruments. Bearish intraday trades are also prohibited.

The decision to apply restrictive measures on the whole share price list was taken with the aim of restoring market integrity, also being complementary to the extraordinary measures on short selling which were adopted in the last days by ESMA and by the Supervisory Authorities of Spain, France and Belgium“.

Consob has also introduced (Resolution n. 21304 of March 17, 2020 only Italian version) a temporary enhanced transparency on the shares of 48 Italian companies listed in the MTA segment of Borsa Italiana, with the largest capitalization (above 500 million EUR) and widespread shareholding (companies that are controlled by law are excluded).

According to such measure, the minimum thresholds above which the requirement to notify a shareholding in the affected listed companies applies is lowered at 1% (instead of 3%) for non-SME companies and 3% (instead of 5%) for SMEs.

These measures entered into force today and will be valid, unless revoked, for three months.

Legália will continue to monitor the development of the market situation.


Vito Vittore

Elena Pagnoni

Roberta Talone