Euro Regulators Extend Short-Selling Bans

Regulators have extended short-selling bans on selected European bank stocks in a bid to stem market volatility.

Regulators have extended short-selling bans on selected European bank stocks in a bid to stem market volatility, Financial Times reports. France, Belgium, Spain and Italy imposed the bans two weeks ago as their financial markets came under pressure. France has extended its ban until November 11 and Italy and Spain until the end of September, adds AFP. The move came after French regulator Autorité des Marchés Financiers was alerted by a spike in the trading of bank stocks, such as Société Générale, which fell 15% the day before the ban was agreed upon. Dealing in the banned stocks has since declined 62% from its pre-ban spike.

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