I just received this announcement from my broker. It gives some good information regarding the short selling situation in Spain and Italy. Current established shorts can remain in place but new shorts can not be established. It gives links to the official announcement from the regulators in each country. When the news were announced I did not know how it would work, this information clearly specifies it.
Dear IB Customer, On July 23rd the Spanish and the Italian regulators (CNMV and CONSOB) implemented temporary regulatory measures whereby a large number of Spanish and Italian stocks are now the subject of restrictions which ban the establishing of, or the increasing of short positions. As a result, certain trading restrictions have been put in place by IB in respect of the latest short selling restrictions. Please note that each customer remains responsible for ensuring that the orders/transactions are in compliance with applicable laws and regulations in force at all times and you are therefore strongly advised to read the announcements from CNMV and CONSOB, which are found in the links below, before placing any orders in affected securities or related financial instruments:
CNMV website (see announcement from 23rd July) ( http://cnmv.es/portal/home.aspx?lang=en )
CONSOB resolution on short selling ban ( http://www.consob.it/mainen/documenti/english/resolutions/res18283.htm )
Additionally, you may also visit the CONSOB website directly.
Interactive Brokers Customer Service
Message Reference Number: 4796309-1343405155671, Sent Date: 2012.07.27 07:07:23 -0400