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 the integrity of the market;

Having regard to the exceptional measures on short sales of securities issued by the United Kingdom and the United States Authorities on September 18, 2008 in relation to the serious situation of financial sectors;

Whereas CESR (Committee of European Securities Regulators), in the press release of September 19, 2008 provided information about its activity of co-ordinating actions regarding short sales in the Member States, also to counteract possible market abuse;

Whereas Consob, by press release issued on September 19, 2008, called operators to fully comply with the rules on delivery of securities within the relevant settlement term, taking into account the impact that delays may have on the orderly conduct of trading and integrity of the markets;

Having regard to the measures imposing restrictions on short sales in relation to banking and insurance securities adopted on September 22, 2008 by the competent authority of Ireland, Germany, France, Luxembourg, Belgium and The Netherlands;

Taking into account that, in order to ensure the transparency, the orderly conduct of trading and the investor protection, it is necessary to avoid that speculative manoeuvres which may entail an anomalous reduction of prices of banking and insurance shares be directed to Italian markets;

R E S O L V E S

The sale of shares issued by banks and insurance companies listed and traded on the 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.

The operators for the clearing and settlement systems shall adopt any and all measures to prevent speculative manoeuvres that may entail an anomalous reduction of the prices of shares issued by banks and insurance companies.

These provisions shall not apply to the activity carried out, in the exercise of their own functions, by market makers referred to under Article 1, paragraph 5-quater of Legislative Decree No. 58 of February 24, 1998, nor to the activity carried out in regulated markets, in the exercise of their own functions, by specialists and liquidity providers as defined in the Listing Rules of the regulated markets organised and managed by Borsa Italiana S.p.A.

The provisions of this resolution shall take effects from 0.00 h. of September 23, 2008 to 12.00 p.m. of October 31, 2008.

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

Rome, 22 September 2008

The Chairman
Lamberto Cardia