After about five weeks the Athens Stock Exchange is expected to reopen on Monday, albeit with certain restrictions imposed on Greek investors, in order to prevent funds flooding out of the domestic banking system.
According to the ministerial decision, Greek investors will not be able to draw funds from existing bank accounts to purchase shares, but will rather have to use existing holdings of cash. These limitations will create a “two-speed” system, favoring foreign investors.
The Athens Stock Exchange has been closed since the 26th of June and has remained closed ever since the introduction of capital controls.. The banks remained closed up until the 20th of July, when they reopened offering a range of services.
The Hellenic Capital Markets Commission (HCMC) has issued the following statement:
The Hellenic Capital Market Commission (HCMC), during its 725/3.8.2015 Board of Directors’ meeting and taking into account the Legislative Act «Urgent restrictions on the transfer of capital and on cash withdrawals» (Official Gazette of the Greek Republic, number 84/18.7.2015) and the Decision of the Minister of Finance “Lifting of the restrictions of the Legislative Act regarding transactions in financial instruments on greek regulated markets” (Official Gazette of the Greek Republic, number 1617/31.7.2015), decided the following:
a. The reopening of the ATHEX regulated markets and the Multilateral Trading Facility of “EN.A.” (Alternative Market of the Athens Exchange), taking also into account the relevant decision of the Athens Exchange Decision Committee,
b. The reopening of the Electronic Secondary Market “HDAT”, for government bonds, operated by the Bank of Greece, taking also into account the relevant decision of the Bank of Greece,
c. The reopening of the ATHEXClear for all securities and derivatives instruments traded on the Greek securities and derivatives markets and the Multilateral Trading Facility “EN.A.”.
d. The commencement of operations of settlement of securities traded in Greek markets, by the Hellenic Central Securities Depository (CSD),
e. The temporary prohibition of implementation of article 5 and par. 1.ii of article 2 of HCMC decision 6/675.2014, regarding margin provided by investment firms within clearing deadline,
f. Redemption of mutual funds’ units will continue to be suspended.
g. The prohibition (HCMC Board decision 722/27.7.2015) of transactions in any financial instrument which would create or increase a short position as well as the prohibition of short sales of the shares admitted to trading on the Athens Exchange and the Multilateral Trading Facility of “EN.A”, for which the relative Competent Authority is the HCMC shall not apply to:
(a) Market Makers performing transactions on the above shares,
(b) Market Makers performing transactions on the stock derivatives of the above shares, 1 Kolokotroni & Stadiou Str., 105 62 Athens – Tel. +30-210-33.77.100, Fax: +30-210-3377205 – https://www.cmc.gov.gr
(c) Market Makers performing transactions on warrants of the above shares. (d) Market Makers performing transactions on ETFs and Index derivatives of which the above shares are part of their composition. All the above exemptions referred to market making activities permitted only when the short selling transactions are conducted for hedging purposes.
This decision enters into force as of today, the 3rd of August 2015.
