ESMA proposes lowering the reporting threshold for net short positions to 0.1% on a permanent basis.

ESMA proposes lowering the reporting threshold for net short positions to 0.1% on a permanent basis.

11:55 25 mai in Non classifié(e)
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ESMA, the EU’s securities markets regulator, recommends to the European Commission (EC) to permanently lower the threshold to notify net short positions on shares to national competent authorities (NCAs) from 0.2% to 0.1%.

ESMA has examined the evidence gathered after its successive emergency decisions, beginning in March 2020, which lowered, for the first time, the notification threshold to 0.1% on a temporary basis.

  • The analysis showed that a substantial amount of additional and essential information became available to NCAs due to the reporting of net short positions at the level of 0.1%.
  • This additional transparency to NCAs of the real level of net short positions established in the market translates into an improved ability by NCAs to conduct market oversight.
  • ESMA therefore considers it essential to lower the reporting threshold to 0.1% on a permanent basis.

 

Next steps

The EC may adopt a delegated act modifying the notification threshold in Article 5(2) of the Short Selling Regulation.