On May 26, the Committee of European Securities Regulators (CESR) published its report CESR/10-453 Technical Details of the Pan-European Short Selling Disclosure Regime.

CESR/10-453 follows on from CESR’s A Model for a Pan-European Short Selling Disclosure Regime (CESR/10-088) (see the March 5, edition of Corporate and Financial Weekly Digest).

The technical details set out in CESR/10-453 relate to the key areas identified in CESR/10-088 as needing in-depth explanation and elaboration. Accordingly, further detail is provided on the following issues:

1) Determination of economic exposure for the purposes of calculating a net short position
2) Calculating changes of net short positions
3) Netting and aggregation within an organizational structure
4) The mechanics of disclosure
5) Exemptions from disclosure obligations

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