Legal Framework


Resolution no. 19063

Extension of the temporary prohibition of creating 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 opinions requested to ESMA on 27 October 2014 and 10 November 2014 pursuant to Article 26 of the above-mentioned Regulation (EU) no. 236/2012;

HAVING REGARD TO Consob Resolution no. 19053 of October 27, 2014, which adopted restrictions on net short positions on BMPS and CARIGE shares starting from October 28, 2014;

TAKING INTO ACCOUNT the volatility and the significant decrease in price of shares issued by BMPS and CARIGE during the months of October and November 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 persistence of uncertainty regarding the timing and the modalities of remedial actions to be carried out in order to cope with the above-mentioned capital shortfalls;

CONSIDERING THAT the measures contained in Article 12 of the above-mentioned Regulation (EU) no. 236/2012 are no more sufficient;

CONSIDERING THAT in order to preserve market confidence it is needed to extend the temporary restrictions on net short positions on BMPS and CARIGE shares adopted with Resolution no. 19053 of October 27, 2014;

RESOLVES AS FOLLOWS:

1. The effects of Resolution no. 19053 of October 27, 2014 are extended until the end of the trading day of January 27, 2015.

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

11 November 2014

THE CHAIRMAN
Giuseppe Vegas