The UK financial market regulator had announced last Saturday that it had imposed a ban on for the short selling of stocks of three Portuguese firms. The temporary ban was issued to allow the market regulator to manage the inherent volatilty of the identified shares.

This ban was followed suit in Portugal, where its very own regulatory authorities have been trying to calm stock volatilty. The market's issues have been attributed to the resignation of the two ministers of the current Portuguese government that left the country teetering on the edge of collapse.

The UK regulator had imposed bans onBanco Comercial Portugues, Banco Espirito Santo and Sonae Industria SGPS. According to the Financial Conduct Authority, the ban would would be enforced starting midnight of Thursday.

The move was brought about by the sudden decline of more than 10%  from the previous trading sessions with these idenfied shares of stock. 

This is the second ban issued by UK regulators last February. A previous order was made over specific Italian shares of stock after the Italian elections.