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ARTICLE · 27 MARCH 2020

Short-Selling Regulatory Update Amidst The COVID-19 Pandemic

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The current COVID-19 pandemic has undoubtedly, already had a negative impact on the financial market within the European Union ("EU").

MaltaFinance and Banking
Bettina Gatt
Bettina Gatt
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The current COVID-19 pandemic has undoubtedly, already had a negative impact on the financial market within the European Union ("EU"). Both the European Securities and Markets Authority ("ESMA") and the National Competent Authorities ("NCA"), including the Malta Financial Services Authority, have hastily began taking measures which attempt to mitigate the repercussions that such pandemic has created and will continue to create on the financial market.

In line with Article 28(2)(b) of Regulation (EU) No 236/2012 on short selling and certain aspects of credit default swaps, although there have already been a scarce number of NCAs which have implemented measures to address the existing threat caused by COVID-19, the actions implemented were not considered as being adequate enough to "stabilise" the downward trends which we are currently facing and which we will continue to face in the coming weeks and months.

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