The European Securities and Markets Authority (“ESMA”), an organization established by the European Union as its securities regulatory authority, said in a public statement today that some authorities in the European Union have decided to impose or extend existing short-selling bans or restrictions in their respective countries due to recent volatility in the European financial markets. ESMA stated, “While short-selling can be a valid trading strategy, when used in combination with spreading false market rumours this is clearly abusive.” It went on to say, “The following countries have today announced or will shortly announce new bans on short-selling or on short positions: Belgium, France, Italy and Spain. Information on these measures can be retrieved from the websites of the relevant competent authorities. These measures will take effect as of 12 August 2011.”

By banning, restricting and disclosing short sales, such countries’ regulators are seeking to maintain confidence in their own markets and complement the measures taken by other European Union regulators. Clients and others who may be affected by the requirements below are encouraged to seek advice from local counsel.

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