Four European countries ban short-selling

France, Italy, Spain and Belgium have temporarily banned short-selling of financial stocks in response to sharp share price falls across Europe.

The 15-day ban comes after a week in which French banks saw their share prices plunge to credit crunch levels, with Crédit Agricole falling 15%. In a statement, the European Securities and Markets Authority (ESMA) said the volatility in financial markets had raised concerns for regulators across Europe. “While short-selling can be a valid trading strategy, when used in combination with spreading false market rumors this is clearly abusive,” it said. National regulators will impose the bans “to restrict the benefits that can be achieved from spreading false rumors or to achieve a re...