On 13 March 2020, Rulefinder reported several EU and Asian countries that implemented temporary short selling bans in the wake of COVID-19.
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U.K. – FCA Short Selling Ban
On 13 March 2020, UK FCA issued temporary prohibition of short selling. UK FCA notified temporary prohibition of short selling of specific financial instruments. Overview Temporary ban of short selling affected several instruments (included in list published) as per arts 23(1) and 26(4) of reg 236/2012, followed decision made by an EU NCA. Effectiveness Measure…
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Japan – FSA Improving Disclosures
On 6 March 2020, JPN FSA published explanatory material from disclosure workshops. Section corporate governance reform and disclosures covers disclosure improvements in securities reports resulting from ordinance revisions and associated efforts. Challenge from disclosure on cross-shareholdings failing to meet investor expectations. Also ordinance to disclose management strategy and risk-information effective FY3/20. Efforts in response to…
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South Korea – FSC Tightens Short-Selling Rules
On 10 March 2020, SK FSC announced government regulations on short-selling. SK GVT to tighten regulations on stock short-selling for 3 months beginning 10 March in response to recent market volatility; lower bar for overheated short-selling stocks. Changes In KOSPI market, an issue will be designated overheated short-selling stock if price falling rate is 5%…
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Germany – BaFin Company Voting Rights
On 9 March 2020, BaFin proposed rules on company voting rights. BaFin introducing mandatory electronic transmission of voting rights notifications. Notification of Voting Rights Draft regulation issued proposing to amend the voting rights notification ordinance and thereby introduce the electronic transmission of voting rights notifications to BaFin. Note that FAQs will be published on the…
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E.U. – ESMA MiFID II Double Volume Cap
On 6 March 2020, EU ESMA issued updated public register with latest DVC dataset as per MiFID II, calculations for period 1 February 2019 to 1 January 2020 plus other updates. 58 new breaches i.e. 43 equities for 8% cap, applicable to all trading venues and 15 for 4% cap, that applies to individual trading…
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