Iceland bans short-selling in biggest banks

STOCKHOLM Oct 7 (Reuters) - Iceland's financial watchdog said it had prohibited short-selling shares in the country's main banks Glitnir GLB.IC, Kaupþing KAUP.IC, Landsbanki LAIS.IC, Straumur-Burdaras STRB.IC, Spron and Exista.

"Due to extraordinary market circumstances, and to restore and maintain financial stability, the Financial Supervisory Authority has concluded to define the short selling of shares of certain issuers as behaviour opposed to accepted market practices," it said in a statement on Tuesday.

Share trade in Glitnir, Kaupþing and Landsbanki remained suspended on Tuesday.