French Regulator Complies with the ESMA Guidelines on Automated Trading

The Autorité des marchés financiers (AMF) has included the ESMA guidelines1 on automated trading in its position the provisions of which will apply from 7 May 2012.

These guidelines, issued on the basis of the Market in Financial Instruments (MiFID) and Market Abuse directives, set out the methods for implementation of certain provisions of these directives and their implementing directive in the particular field of automated trading systems, most notably high frequency trading.

They mainly concern the following activities:

- The operation of an electronic trading system by a regulated market or a multilateral trading facility (MTF);
- The use of an electronic trading system, including algorithmic trading, by an investment firm when dealing on own account or for the execution of orders on behalf of clients;
- The provision of direct access to the market or of sponsored access by an investment firm as part of the service of the execution of orders on behalf of clients.

French Regulator Updated General Regulation of The AMF

The Autorité des marchés financiers (AMF), the French capital market watchdog issued updated version with recent Amendments in General regulation of AMF, General Regulation related to Collective Investment Product and General Regulation related to Service Providers.

French Regulator End of the Short Selling Ban Regarding French Securities of the Financial Sector

The Autorité des marchés financiers (AMF), French capital market regulator under New Press Release , the provisions prohibiting any creation of a net short position and increase of an existing one in relation to French equity securities of the financial sector (as listed below) came to an end on Saturday 11 February 2012.

As a consequence thereof, the prohibition of short sales regarding equity securities and securities giving access to the share capital of the following credit institutions and insurance companies is lifted:

- April Group
- Axa
- BNP Paribas
- CIC
- CNP Assurances
- Crédit Agricole
- Euler Hermès
- Natixis
- Scor
- Société Générale
 

The AMF recalls that, with regard to equity securities, a net short position disclosure regime has been implemented since 1 February 2011. The AMF further highlights that pursuant to French regulation, any investor must be in a position to deliver the securities he has sold within 3 trading days (T+3).