- Stock market: the Ibex suffers the biggest drop in its history when it fell by 14%
The National Securities Market Commission (CNMV) wants to avoid speculation in the Spanish markets in the middle of the stock market storm due to the coronavirus and has decided tonight to prohibit short sales during the day on Friday over part of the companies that in this session have been hit harder by the pullback. The Ibex 35 has registered the biggest drop in its history when it fell by 14.06% at the end of the day.
Specifically, and as stated in the statement published by the supervisor late this Thursday, short sales "on all liquid shares admitted to trading whose price has fallen by more than 10% during the session of this 12 will be prohibited March and on all illiquid shares whose fall has been more than 20% ".
As recognized by the CNMV, the agreement has been taken taking into account the evolution of the stock markets in the context of the situation created by the Covid-19 virus, which have registered extraordinary falls in the prices of European shares, with numerous values exceeding the percentages of variation that are included in the regulation.
The risk that disorderly price movements may occur in the European stock market, including the Spanish one, has also been taken into account.
The adopted agreement has entered into force with immediate effect since its publication on the CNMV website
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