Consob resolution No. 18298 of July 27, 2012

Extension of restrictive measures on short sales of shares of the financial sector

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 Consob Resolution no. 17862 of July 10, 2011, whereby Consob, in order to ensure the orderly conduct of trading and the protection of investors, introduced measures on reporting obligations of net short positions held on shares;

Having regard to Consob Resolution no. 17993 of November 11, 2011, whereby Consob, in order to ensure the orderly conduct of trading and the protection of investors, extended the effects of the said Consob Resolution no. 17862 of July 10, 2011 and introduced the prohibition of sale of shares unless supported by the availability by the ordering party, at the moment of the order, of the relevant securities;

Having regard to Consob Resolution no. 18283 of July 23, 2012, whereby Consob in order to ensure the orderly conduct of trading and the protection of investors temporarily  introduced the prohibition of sale of shares of the financial sector unless supported by the ownership and availability by the ordering party of the relevant securities at the moment of the order;

Taking into account  that the markets  uncertainty condition justifying the adoption of the measures included in the above- mentioned Consob Resolutions still persists;

Taking into account that, in order to ensure the orderly conduct of trading and the protection of investors, it is necessary and extremely urgent to extend the restrictive measures on  sales of shares of the financial sector unless supported by the ownership and the availability of the relevant securities;

Taking into account the necessity to clarify the scope of the exemptions granted to the activity of market making and to introduce, in order to strenghten the supervisory activity, reporting obligations by exempted entities to Consob. 

R E S O L V E S

1. The effects of Consob Resolution no. 18283 of July 23, 2012 are extended until 6.00 p.m. of September 14, 2012.

2. Para. 4 of  Consob Resolution no. 18283 of July 23, 2012, para. 4 of Consob Resolution no. 17993 of Novembre 11, 2011 and para. 3 Consob Resolution no. 17862 of July 10, 2011 shall be replaced by the following : " These provisions shall not apply to the activity of market making performed by the members of the Italian markets both on and off such markets. These entities, without prejudice to the right to verify the compliance with the relevant requirements and according to the modalities provided by Consob on its website, shall notify Consob, without any delay, of their intention to make use of such an exemption, indicating the scope of the related activity.They also notify Consob of any relevant  change in the scope of the activity in relation to which they intend to make use of the exemption".      

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

Milan, July 27, 2012

The Chairman
Giuseppe Vegas