UK FSA prohibits short-selling in some Italian shares in support of CONSOB ban

The FSA has temporarily prohibited short-selling in the following financial instruments:

• Banco Popolare shares (ISIN code: IT0004231566)
• Mediolanum shares (ISIN code: IT0001279501)
• Banca Carige shares (ISIN code: IT0003211601)
• INTESA shares (ISIN code: IT0000072618)

This temporary prohibition applies on all UK trading venues on which the above instruments are traded, and is effective for the duration of 27 February 2013.

• Persons are prohibited from entering into, or increasing, any net short positions in these instruments for the period of the prohibition. This includes persons entering into any transaction in, or creating any financial instrument that is linked to the financial instrument in question that financially advantages them when the underlying instrument declines in price.
• The prohibition does not extend to those market makers who are legitimately undertaking market-making activities in these instruments and for which they have previously notified the FSA of their intention to use the market maker exemption in these instruments. This exception is in line with the requirements of Article 23(3) of the SSR.

The temporary prohibition is imposed pursuant to the provisions of Article 26(4) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps (SSR).

Basis for the temporary prohibition

The FSA's decision follows significant price falls in these instruments.  Those price movements crossed one of the thresholds set out in Article 23 of Commission Delegated Regulation (EU) No 918/20121 (DR) as being a significant fall in that type of financial instrument. In the opinion of the FSA a temporary prohibition in short selling is justified to prevent disorderly falls in their prices.

The FSA has decided to assist the Italian Competent Authority (CONSOB) by temporarily prohibiting the short selling of these instruments on all UK trading venues on which they are traded, following the CONSOB's decision yesterday to ban short sales in those shares:

• Temporary prohibition of short selling in shares issued by Banco Popolare s.c., pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012
• Temporary prohibition of short selling in shares issued by Mediolanum S.p.A., pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012
• Temporary prohibition of short selling in shares issued by Banca Carige S.p.A., pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012 (resolution no. 18478 of 26 February 2013)
• Temporary prohibition of short selling in shares issued by Intesa Sanpaolo S.p.A., pursuant to Article 23 of the Regulation (EU) of the European Parliament and of the Council no. 236 of 14 March 2012 (resolution no. 18477 of 26 February 2013)

The FSA may extend the duration of this prohibition under the provisions of Article 23(2) if either the price of the instruments fall significantly, in accordance with the Delegated Regulation while this prohibition is in place, or the CONSOB chooses to extend the measure it has imposed.

The FSA will publish further information as necessary under the requirements of Article 25.