On July 6, the European Securities and Markets Authority (ESMA) issued an official opinion (Opinion), agreeing to renew the emergency short selling prohibition originally imposed by the Hellenic Capital Market Commission (HCMC) on June 29. The original ban was imposed under Regulation (EU) No 236/2012 of the European Parliament and Council on short selling and certain aspects of credit default swaps. The renewed ban took effect on July 7 and will close at 11:00 p.m. CET on July 13. The original and renewed bans place a temporary prohibition on transactions in any financial instrument that creates, or increases, a net short position on any of the shares admitted to trading on the Athens Exchange and the Multilateral Trading Facility of EN.A (Alternative Market of the Athens Exchange). The original and renewed bans apply to any person, regardless of their country of residence and do not include an exemption for market making activities.

ESMA stated in the Opinion that they had renewed the ban because adverse developments continue to exist that can threaten the confidence in the Greek market. ESMA further stated that such a ban is an appropriate and proportionate action.

A copy of the Opinion issues by ESMA can be found here.