Consob resolution No. 16904 of May 27, 2009

Measures on short sales of securities aimed at ensuring the orderly conduct of trading and the integrity of the market

THE ITALIAN COMPANIES AND STOCK EXCHANGE COMMISSION (CONSOB)

Having regard to Law 216 of June 7, 1974, as subsequently amended;

Having regard to Article 74, para. 1 and para. 3, of Legislative Decree No. 58 of February 24, 1998, according to which Consob shall supervise regulated markets with the aim of ensuring the transparency of the markets, the orderly conduct of trading and the protection of investors, by adopting, in cases of necessity and as a matter of urgency, all the measures required for the above-mentioned purposes;

Having regard to Article 21, paragraph 1, lett. a) of Legislative Decree No. 58 of February 24, 1998, according to which, in providing investment services and activities and non-core services, authorized intermediaries shall act diligently, fairly and transparently in the best interest of the clients and for the integrity of the market;

Having regard to Consob Resolutions No. 16622 of September 22, 2008, No. 16645 of October 1, 2008, No. 16652 of October 10, 2008, No. 16670 of October 29, 2008, No. 16765 of December 30, 2008, No. 16781 of January 29, 2009 and No. 16813 of February 26, 2009 whereby Consob with the aim of ensuring the transparency, the orderly conduct of trading and the protection of investors adopted measures setting restrictions on short sale of shares;

Taking into account the current conditions of the markets;

Taking into account that it is still necessary to maintain restrictions with reference to short sales, in order to avoid that speculative trading could entail an anomalous reductions of the prices of shares;

R E S O L V E S

1. The sale of shares listed and traded on Italian regulated markets shall be supported, from the moment of the order up and until the date of the settlement of the transaction, by the availability by the ordering party of the relevant securities.

2. To the purposes of point 1, the securities borrowed pursuant to securities lending arrangements entered into whatsoever technical form shall be deemed to be available to the borrower. The same securities shall be deemed to be available to the lenders, provided that such securities are called back during the same trading day.

3. The operators for the systems referred to under Articles 69 and 70 of Legislative Decree no. 58 of February 24, 1998 shall adopt any and all measures to prevent speculative manoeuvres that may entail an anomalous reduction of the prices of shares.

4. The members of the Italian regulated markets shall adopt any measure and caution necessary to ensure the strict compliance with the abovementioned provisions including in the case in which they deal with orders from other intermediaries.

5. These provisions shall not apply to the activity carried out, in the exercise of their own functions, by market makers, nor to the activity carried out in regulated markets in the exercise of their own functions by specialists, as defined in the Rules of the regulated markets organised and managed by Borsa Italiana S.p.A., and by intermediaries acting in the performance of a liquidity contract (liquidity providers).

6. The provisions under point 2 of Resolution No. 16813 of February 26, 2009, according to which the sale of shares shall be supported, from the moment of the order up and until the date of the settlement of the transaction, by both the availability and the ownership by the ordering party of the relevant securities, shall continue to apply to shares issued by companies which, at the date of entry into force of this Resolution, are subject to a capital increase until the day of delivery of those shares.

The provisions of this resolution shall take effects from 00.00 a.m. of June 1, 2009 to 12.00 p.m. of July 31, 2009.

This resolution is published on the web-site and the Bulletin of Consob.

Rome, May 27, 2009

The Chairman
Lamberto Cardia