As communicated yesterday evening, the Austrian Financial Market Authority (FMA) has prohibited short selling on the Vienna Stock Exchange (VSE) completely. While so far there was only a ban on naked short selling in the Austrian market, now covered short selling is also forbidden.
This measure has been taken in connection with the market turbulences induced by the current Corona pandemic situation. The restriction became valid with immediate effect and is currently limited for the period of one month. As the FMA communicated, it might either be removed earlier or prolonged, depending on the market development.
Due to persistent and substantial uncertainties in the market, the FMA has temporarily prohibited all short selling of securities listed on any regulated market of the VSE governed by the FMA. The only exceptions are trades placed by parties in their role as market makers and certain index-basis papers.
Impact on investors: Going forward, short selling is no longer possible on the VSE.