On June 10, the European Securities and Markets Authority (ESMA) renewed its decision requiring net short position holders of shares traded on an European Union (EU) regulated market to temporarily report positions to their EU financial regulator that equal or exceed 0.1 percent of the relevant company’s entire issued share capital (the Decision).
ESMA first introduced this measure in a decision published on March 16 and was required to review the effect of such measure at least every three months (for more information on the initial decision by ESMA, please see the advisory prepared by Katten, available here). Consequently, ESMA carried out a review of this measure by analyzing a number of performance indicators in the EU. ESMA explains that it then reached the Decision to help maintain the ability of EU financial regulators to deal with any threats to market integrity, orderly functioning of markets and financial stability of the EU at an early stage.
The Decision becomes effective on June 17 and applies for a further period of three months until September 17.
The Decision is available here.