Legal Framework


Resolution n. 19748

Extension, with amendments, of the 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 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 opinions issued by ESMA on 6 July 2016 and 4 October 2016 pursuant to Article 27 of the above-mentioned Regulation (EU) no. 236/2012;

HAVING REGARD TO Consob Resolution no. 19655 of July 6, 2016, which adopted restrictions on net short positions on BMPS shares starting from July 7, 2016 and ending on 5 October 2016;

TAKING INTO ACCOUNT the requests from the European Central Bank to BMPS regarding the reduction of the non-performing loans;

TAKING INTO ACCOUNT the results of the stress test coordinated by the European Banking Authority and published on July 29, 2016;

TAKING INTO ACCOUNT the delay and the consequent uncertainty, caused also by the recent changes to BMPS’s board of directors, regarding the above-mentioned plan for the reduction of the non-performing loans and the connected capital actions;

TAKING INTO ACCOUNT the persistence of volatility and the significant decrease in price of shares issued by BMPS during July, August and September 2016;

CONSIDERING THAT the measures contained in Article 12 of the above-mentioned Regulation (EU) no. 236/2012 are not sufficient;

CONSIDERING THAT in order to preserve market confidence it is needed to extend the temporary restrictions on net short positions on BMPS shares adopted with the above-mentioned Resolution no. 19655 of July 6, 2016, for the maximum timespan of 3 months allowed by Article 24 of the above-mentioned Regulation (EU) no. 236/2012;

CONSIDERING THAT, in order to facilitate potential capital actions, it is appropriate to include, in the calculation of the net short positions relevant for the above-mentioned restrictions, the positions in subscription rights, convertible bonds and other instruments which give claims to BMPS shares not yet issued;

RESOLVES AS FOLLOWS:

1. The effects of Resolution no. 19655 of July 6, 2016 are extended until the end of the trading day of January 5, 2017.

2. After paragraph 3 of Resolution no. 19655 the following paragraph 4 is added “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.”

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

4 October 2016

THE CHAIRMAN
Giuseppe Vegas