Sections

AFM prolongs short-selling ban after all

Related images

  • AFM prolongs short-selling ban after all

NETHERLANDS - The Dutch financial regulator AFM has made a surprise and extended its measures on short-selling, despite its earlier proposal to lift them.

The supervisory body has revealed it thought it appropriate to postpone its original plan under current exceptional market circumstances.

The extension of the rule, prohibiting any person from effecting a short sale in financial stocks, comes after shares of two Dutch insurers ING and Aegon suffered from heavy speculation again.

The supervisory body held a consultation among market participants last on the short-selling ban which was renewed in January.

Although many parties agreed with AFM's plan to end the rule, several others asked for the measures to be extended, referring to current market turmoil.

IPE learnt last week the AFM would have encountered no opposition had it ended the short-selling ban and Eumedion, Dutch lobby organisation for institutional investors, last month recommended European authorities cease existing rules on short selling, arguing their effectiveness was uncertain.

The AFM says the short-selling ban will cease to have effect as soon as market circumstances allow it, though the ban will be lifted before 1 June 2009.

The regulator has this time stated it will not consult market participants but will take the policy of other European authorities into consideration before taking any decisions.

The UK's Financial Services Authority lifted its ban on short-selling in January.

If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2466

    Asset class: Multi-asset funds.
    Asset region: Global.
    Size: EUR 30m.
    Closing date: 2018-08-16.

  • QN-2467

    Asset class: Search for a broker (mainly ETFs).
    Asset region: Global.
    Size: 250m.
    Closing date: 2018-08-28.

  • DS-2468

    Closing date: 2018-08-24.

Begin Your Search Here