Legal Framework


Resolution n. 19489

Extension of temporary prohibition of short selling in shares issued by Banca Monte dei Paschi di Siena ("BMPS"), pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012

LA COMMISSIONE NAZIONALE PER LE SOCIETÀ 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, imposing restrictions on uncovered short sales in shares;

HAVING REGARD TO Article 23 of the above-mentioned Regulation (EU) no. 236/2012, which defines the power to temporarily restrict short selling of financial instruments in the case of a significant fall in price;

HAVING REGARD TO Consob Resolution no. 19488 of January 18, 2016 whereby Consob introduced the prohibition of short selling in BMPS shares on the MTA market until the end of the trading day of January 19, 2016, pursuant to article 23 of the above-mentioned Regulation no. 236/2012;

TAKING INTO ACCOUNT THAT the relevant threshold for the extension of the restrictive measures adopted with the above-mentioned Resolution no. 19488 is equal to 5%;

TAKING INTO ACCOUNT THAT the fall of the price of BMPS share on the MTA market at the end of January 19, 2016, compared to the closing price on the previous trading day, was greater than 5%;

CONSIDERING THAT the information background does not validate the above-mentioned price fluctuation and, therefore, downward speculation phenomena shall not be excluded;

RESOLVES AS FOLLOWS:

1. The effects of Consob Resolution no. 19488 of January 18, 2016 are extended until the end of the trading day of January 21, 2016, under Article 23(2) of the above-mentioned Regulation.

This resolution is published on the Consob website. This resolution shall be transmitted to Borsa Italiana and shall be published on the Consob Bulletin.

19 January 2016

THE CHAIRMAN
Giuseppe Vegas