AvaTrade restricts short selling of Spanish shares

The following email echoes a recent one they sent out restricting the short selling of French & Italian shares

Email received from AvaTrade:

Dear Trader,

The ESMA has endorsed an emergency short selling prohibition on Spanish stocks as well, for a period of up to three months.

The European Securities and Markets Authority considers that the proposed measure is justified by the recent adverse events which represent a significant threat to market confidence and financial stability in the EU.

The new restrictions on short selling aim to curb the slump in equity markets driven by the corona situation.

As a result, clients will no longer be able to short sell Spanish, French and Italian stocks for the duration of this prohibition. The measures do not apply to indices.

Clients will not have the ability to open new short (sell) positions.

However, clients will still have the ability to open/close new long (buy) positions.

They will also be able to close any currently open short (sell) positions.

Best regards,

AvaTrade

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