CONSOB, the Italian markets and securities regulator, banned short selling on March 17. Now that the coronavirus pandemic has calmed down in the country, the ban has officially been lifted.
Although it may be hard to believe that a country could outright ban short selling, it has been the norm in Europe for the past two months. France and Belgium, for example, also outlawed short selling around the same time in March.
The fear was that markets would continue to decline irrationally amid the pandemic.
The COVID-19 situation in Italy has led to some unique economic situations. For example, BeInCrypto reported in late April that one small Italian town had begun issuing its own banknotes.
However, the state the emergency seems to be coming to a close now. Lifting the ban on short-selling may be an indication that the markets are returning ‘back to normal,’ but the economic impact of the coronavirus still weighs heavily on the country.