Temporary ban on short selling in financial shares

In connection with the financial market turmoil, Kredittilsynet (the Financial Supervisory Authority of Norway) has observed unusual market movements in some shares quoted on the Oslo Stock Exchange, and cannot rule out the possibility that the volume of short sales in these quoted instruments may be substantial.

In the present market situation, with particularly wide movements in the price of some shares issued by financial institutions, Kredittilsynet is of the view that any investment firms and investors making short sales, covered or uncovered, in such financial shares are acting in contravention of the Securities Trading Act section 3-9 on prohibition of unreasonable business methods. Kredittilsynet emphasises that this is a provisional assessment. Kredittilsynet will monitor the situation with a view to prolonging the ban and, if appropriate, to including in the ban other financial instruments quoted on the Oslo Stock Exchange.

When, in Kredittilsynet’s assessment, the situation is once again such that short selling in financial shares is no longer in contravention of the ban, Kredittilsynet will inform the market accordingly. 

Contactperson:
Head of Section Eystein Kleven, tel. +47 22 93 98 13, mobile +47 906 87 501

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Head of Communications Kjetil Karsrud, tel. +47 22 93 99 34, mobile +47 906 57 621
Senior Communications Adviser Arild Eide Johansen, tel. +47 22 93 99 94, mobile +47 971 52 011