Tuesday, May 18, 2010

BanFin Announces Details of Its Naked Short Sale Ban

Blow is a translation of the full announcemnet made by the German finance regulator BanFin.

BaFin banned naked short sales and unsecured CDS on government bonds in the euro zone

The Federal Financial Supervisory Authority (BaFin) on Tuesday naked short sales of debt securities by euro zone countries, which are admitted to trading on a domestic exchange in the regulated market, temporarily prohibited. it has also temporarily banned so-called credit default swaps (CDS), where the reference obligation is a liability, at least one country of the euro area and they do not serve to hedge risks (unsecured CDS).

In addition, the BaFin naked short sales of shares of the following companies in the financial sector has not:

    * AAREAL BANK AG
    * ALLIANZ SE
    * COMMERZBANK AG
    * GERMAN BANK AG
    * GERMAN EXCHANGE AG
    * GERMAN Postbank AG
    * GENERALI HOLDING AG Germany
    * HANNOVER REINSURANCE AG
    * MLP AG
    * Munich Reinsurance Company AG

These prohibitions apply from 19 May 2010, 00:00 clock, 31 March 2011, 24:00 Clock, and will be reviewed.

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