Turkey bans six global banks

8 July, 2020 12:00 AM printer

New York: Turkey imposed a ban on six foreign banks from betting against the nation’s stocks in a move that appeared to contradict recent steps toward easing such restrictions.

Goldman Sachs Group, JPMorgan Chase, Merrill Lynch International, Barclays Bank, Credit Suisse Group, and Wood & Co have been barred from short-selling stocks for up to three months, Borsa Istanbul said in a statement, report agencies.

The announcement comes less than week after the country’s Capital Markets Regulator removed a short-selling ban on its largest listed companies on June 30, easing a restriction introduced in October 2019 to help shield the country’s markets from various bouts of volatility. Last month, MSCI warned that it may start a consultation on a proposal to reclassify the MSCI Turkey Index to frontier-market or stand-alone status in the coming months if the “already deteriorating accessibility level of the Turkish equity market were to worsen.”