Short Selling Restrictions Imposed on French and Italian Stocks

Short Selling Restrictions Imposed on French and Italian Stocks

As the troubling coronavirus situation continues to get worse, temporary restrictions have been imposed on French and Italian stocks.

These restrictions have been instilled by European Securities and Markets Authority (ESMA), the European Union financial regulatory agency and European Supervisory Authority who oversee the workings of the European trading market. Specifically, the restrictions will focus on the prohibition of short selling on the stocks of French and Italian companies.

The emergency measures will be in place for up to 3 months as a direct precaution against the further selling off of these stocks during periods where much of the country are on lockdown as they continue to battle through the pandemic.

The news of the restrictions was released by Avatrade in an email which detailed the intention behind the move. The post reads, “ESMA considers that the proposed measure is justified by the recent adverse events which represent a significant threat to market confidence and stability in Europe”.

As we have reported, the market worldwide has crashed to lows not witnessed in decades with many fearing a recession on the way if the situation isn’t resolved soon. In fact, just over a week ago Avatrade has stated that a bear market is now upon us. As a result of these restrictions to the market, the hope is to curve the equity slump that the Coronavirus has caused.

While Avatrade is the first to make their users aware of the restrictions, it will be the same across the market at all platforms where such stocks are available. As such, it is pertinent to pay attention to the details, whether you are a current user of Avatrade or not, as they will be in effect market-wide.

From now on, traders will be unable to short sell French or Italian stocks until the end of the prohibition, although index products will remain unaffected. No traders will be able to even open sell (short) positions during this 3-month period either.

 uring the period, it will still be possible to open new long (buy) positions, however. As well as this, if you have any short positions already open then it will be possible to close these too. However, once completed, then you will not be able to do any more.

Summing up the new measures, AvaTrade stated, “Most importantly, stay safe – together we will overcome the storm as we look to a brighter future together”.

Go to Avatrade now to finish up any short positions, buy stocks, or keep track of the market as the situation develops.

Recently Similar News

casinoin-promotion etoro-promotion

Latest Guides

Latest News

AvaTrade,CFD Trading Platform,Investment,Trading

CFD Platorm’s Cite Oil As This Weekend’s Important Asset

Two CFD trading platforms have drawn attention to the value of oil and explained why it should be on the savvy traders shopping list this weekend. Both AvaTrade and have shared similar sentiments about the need to get involved with oil as the price is currently its lowest in 20 years. Oil’s price has […]

4 April, 2020
Binance,Exchange Platforms,Promotion

Win $1,000,000 at Binance Futures

Binance Futures has launched a new trading tournament where a prize pool of up to $1,000,000 worth of BNB tokens is up for grabs. This will be the second tournament that the platform has launched for their expanding project following a similar event taking place in January. This one is set to launch next week […]

3 April, 2020
Crypto Wallets,Promotion,Trezor

Last Day To Save 15% on Trezor Wallets

Trezor’s STAYSAFE Promotion is set to end within the next 24 hours.   If you have missed both of our two news post so far about the on-going promotion at Trezor where traders can save 15% when buying either one of their top quality hardware wallets – the Trezor One or the Trezor Model T -then […]

3 April, 2020
CEX,Cryptocurrency,Exchange Platforms,Investment

MATIC To Be Listed on CEX Next Week

The Indian-based project, MATIC is set to be the latest listing on the exchange platform, CEX with full trading to be in place by the end of next week. The listing will be somewhat of a world first in that it will make CEX the first and only platform in the world where you can […]

2 April, 2020
BitPanda,Cryptocurrency,Exchange Platforms

BEST Rewards Now Live At BitPanda

BitPanda has rolled out their new BEST rewards concept where players can earn up 12.78% of additional BEST every year. The new reward scheme will see the exchange platform give out these rewards to any trader who buys and holds the platform’s native token, BEST, in their wallets. On a monthly basis, the platform will […]

2 April, 2020
IQ Option,Trading

Learn Tips and Avoid Mistakes With New Guides from IQ Option

IQ Option have released two new guides that deal with two opposite ends of trading behaviour. These two new guides from the platform are the latest in a long line of guides that the platform have been busy rolling out in recent weeks. Some of these guides have focused on techniques, while others have focused […]

1 April, 2020
CFD Trading Platform,Exchange Platforms,Investment,Trading

XTB Offering Close Only on USFANG Stocks

XTB will be temporarily only offering the option to close three USFANG related assets. The changes will be affect USFANG and USFANG+ and USFANG all of which no new open positions will be made available until further notice. This means that if you are looking to start trading these then you will not be able to […]

1 April, 2020
Crypto Wallets,Promotion,Trezor

Trezor STAYSAFE Promotion Still Live

Last week, we let our users know about a coronavirus-orientated promotion where users will be able to save money on Trezor hardware wallets. There are now just a few days left for traders to get involved The deal will allow traders who want to purchase either the Trezor One or the Trezor Model T with […]

31 March, 2020