Spain, Italy Ban Short Selling to Slow Market Turmoil
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Spain and Italy reinstated a short-sale ban on stocks as bank shares plunged to record lows, bond yields rose and the euro traded below its lifetime average against the dollar on concern the debt crisis is growing.
Spain’s CNMV market regulator banned the creation of negative bets on equities through shares, derivatives and over-the-counter instruments for three months. Italy’s Consob prohibited the practice on 29 banking and insurance stocks for one week, citing “grave tensions” in financial markets.