French Monetary and Financial Code
In forceI. - Once the order has been executed, the buyer and seller of the financial instruments referred to in I of Article L. 211-1 are definitively committed, the former to pay and the latter to deliver, on the date referred to in III of Article L. 211-17.
Without prejudice to Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March 2012 on short selling and certain aspects of credit default swaps, a seller of financial instruments referred to in I of Article L. 211-1 and admitted to trading on a regulated market from issuing a sell order if he does not have the financial instruments to be sold on his account, or if he has not taken the necessary steps with a third party to obtain reasonable assurances about his ability to deliver these financial instruments on or before the date scheduled for delivery following trading.
Derogations from this article may be made under conditions laid down by decree, following a reasoned opinion from the College of the Autorité des marchés financiers.
The service provider to which the order is transmitted may require, upon receipt of the order or as soon as it has been executed, that a provision be set aside in its books, as cover, in cash in the case of a purchase, or in the financial instruments to be sold in the case of a sale.
II. - The AMF may impose the penalties provided for in II and III of Article L. 621-15 on any natural person or legal entity that executes a transaction the object or effect of which is to contravene the provisions of this article and III of Article L. 211-17.
