Order On Short Selling

Original Language Title: Order On Short-Selling

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Executive order on short selling

Pursuant to § § 39 (b) and 93, paragraph 4, of the law on securities trading, etc., see. lovbekendtgørelse nr. 848 of 19. August 2008 as amended by law No. 1003 out of 10. October 2008, fixed:

§ 1. Agreements, resulting in a short position or an expansion of an existing short position shall not be concluded relating to shares admitted to trading on a regulated market and issued by banks with permission in accordance with section 7 of the financial business Act.

(2). A position is considered short in accordance with paragraph 1, if the person enters into agreement, not

1) at least own the amount of shares to which the person must provide, or

2) have concluded agreements, which means that the person will get to at least to own the amount of shares to which the person must provide, at the time of delivery.

(3). Ownership under paragraph 2 does not include loans of shares.

§ 2. Contracts may not be concluded for financial instruments other than shares, which could be achieved if the share price falls on profit shares subject to section 1, paragraph 1.

(2). The provision of paragraph 1 shall not apply to the award of contracts to hedge the risk of shares within the scope of article 1, paragraph 1, including hedging, that is carried out on the basis of an index of shares, provided that the cover is proportionate to the risk.

§ 3. The provision in article 1, paragraph 1, and paragraph 2 shall not apply to price stilleres sale of shares and other financial instruments, when they are acting in their capacity as market makers.

(2). By a market maker shall mean a securities dealer who in the financial markets and on a continuous basis is willing to deal on own account by buying and selling securities for own-account business rates, as the person himself.

(3). The provision in article 1, paragraph 1, and paragraph 2 shall not apply to trading in own shares in buy-back programmes or with financial instruments as part of the stabilization of the price of a security, provided that such transactions are carried out in accordance with Commission Regulation No 2454/93. 2273 of 22. December 2003 on the implementation of European Parliament and Council Directive 2003/6/EC as regards the buy-back programmes and stabilisation of financial instruments.

§ 4. Violation of section 1, paragraph 1, and article 2 is punishable by a fine.

(2). That can be imposed on companies, etc. (legal persons) criminal liability according to the rules laid down in the Penal Code Chapter 5.

§ 5. The notice shall enter into force on 13 November. October 2008.

§ 6. The notice applies to the Faroe Islands and Greenland.

(2). The notice shall enter into force on the day after announcement of the Faroe Islands Faroese promulgation leaf.
The Danish financial supervisory authority, the 10. October 2008 Peter Sylvest Larsen/Arun