Legal Framework


Resolution n. 19655

Temporary prohibition of taking and increasing net short positions in shares issued by Banca Monte dei Paschi di Siena spa (BMPS), 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 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, 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 6 July 2016 pursuant to Article 27 of the above-mentioned Regulation (EU) no. 236/2012;

TAKING INTO ACCOUNT the relevant increase in volatility and the significant decrease in price of shares issued by BMPS during the last trading days;

TAKING INTO ACCOUNT the press release published on 4 July 2016 by BMPS whereby it informed the public that the European Central Bank requested the provision, by 3 October 2016, of a plan for the reduction of the non-performing loans;

TAKING INTO ACCOUNT the persistence of uncertainty regarding the abovementioned plan for the reduction of the non-performing loans;

TAKING INTO ACCOUNT the marginal weight of BMPS shares in financial indices;

CONSIDERING THAT the measures contained in Article 12 of the above-mentioned Regulation (EU) no. 236/2012 and in Consob Resolution no. 19653 of 5 July 2016 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 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: IT0005092165), under Article 20 of the above-mentioned Regulation, taking effect from the start of the trading day of July 7, 2016 and until the end of the trading day of October 5, 2016.

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 and including market makers.

3. Pursuant to Article 20(3) of the above-mentioned Regulation, where the shares mentioned in paragraph 1 are components of a financial index, the above-mentioned prohibition does not apply to the trading of index-related instruments.

4. Subscription rights, convertible bonds and other financial instruments which give claims to BMPS shares to be issued are included in the calculation of net short positions mentioned in paragraph 1(1).

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

6 July 2016

THE CHAIRMAN
Giuseppe Vegas


1. Paragraph added by Consob resolution no. 19748 of 4 October 2016.