Legal Framework


Resolution no. 19053

Temporary prohibition of taking and increasing net short positions in shares issued by Banca Monte dei Paschi di Siena spa (BMPS) and Banca Carige spa (CARIGE), pursuant to Article 20 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012

LA COMMISSIONE NAZIONALE PER LE SOCIETA' E LA BORSA

HAVING REGARD TO Law no. 216 of June 7, 1974, as subsequently amended and integrated;

HAVING REGARD TO Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012;

HAVING REGARD TO Article 4-ter(2) of Legislative Decree no. 58 of February 24, 1998, according to which Consob is appointed with the task to implement the measures and exercise the functions and powers provided by Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012 with reference to shares, among others;

HAVING REGARD TO Article 12 of Regulation (EU) no. 236/2012 of the European Parliament and of the Council of March 14, 2012, which imposes restrictions on uncovered short sales in shares;

HAVING REGARD TO Article 20 of the above-mentioned Regulation (EU) no. 236/2012, which, inter alia, defines the power to adopt temporary restrictions on net short positions provided that certain conditions are met;

HAVING REGARD TO the positive opinion issued by ESMA on 27 October 2014 pursuant to Article 27 of the above-mentioned Regulation (EU) no. 236/2012;

HAVING REGARD TO Consob Resolution no. 19052 of October 27, 2014, which adopted restrictions on short selling on BMPS shares;

TAKING INTO ACCOUNT the relevant increase in volatility and the significant decrease in price of shares issued by BMPS and CARIGE during the month of October 2014;

TAKING INTO ACCOUNT the results of the Comprehensive Assessment carried out by the European Central Bank, which showed capital shortfalls for BMPS and CARIGE;

TAKING INTO ACCOUNT the relevant decrease in price of shares issued by BMPS and CARIGE on 27 October 2014;

CONSIDERING THAT the measures contained in Article 12 of the above-mentioned Regulation (EU) no. 236/2012 and in Consob Resolution no. 19052 of October 27, 2014 are no more sufficient;

CONSIDERING THAT in order to preserve market confidence it is needed to adopt temporary restrictions on net short positions on BMPS and CARIGE shares;

RESOLVES AS FOLLOWS:

1. It is prohibited to take net short positions or to increase existing net short positions, regardless of the place where the transaction is executed, on BMPS shares (ISIN code: IT0004984842) and CARIGE shares (ISIN code: IT0003211601), under Article 20 of the above-mentioned Regulation, taking effect from the start of the trading day of October 28, 2014 and until the end of the trading day of November 10, 2014.

2. The prohibition applies to any natural or legal person, irrespective of their country of residence, including when it is outside of the European Union.

3. Pursuant to Article 20(3), the above-mentioned prohibition does not apply to the activity of market making, as defined by in Articles 2(1)(k) and 17 of the aforementioned Regulation and in ESMA Guidelines of April 2, 2013, with reference to market makers included on the list maintained by ESMA of market makers permitted to use the exemption. This exception only extends to those transactions that market makers undertake as part of their market making activities.

4. Pursuant to Article 20(3), where the shares mentioned in paragraph 1 are components of an index, the above-mentioned prohibition does not apply to the trading of index-related instruments, taking into account the marginal weight of the shares in that index.

5. Resolution no. 19052 of October 27, 2014 ceases to produce its effects starting from the entry into force of this Resolution.

This resolution is transmitted to ESMA and Borsa Italiana spa and published on the Consob website and Bulletin.

27 October 2014

THE CHAIRMAN
Giuseppe Vegas