On September 17, the European Securities and Markets Authority (ESMA) renewed its decision (ESMA70-155-11072) to temporarily require holders of net short positions in shares traded on a European Union- (EU) regulated market to report to the relevant EU financial regulator at a reduced threshold of 0.1 percent net short (instead of the pre-existing threshold of 0.2 percent net short). The measure will take effect starting September 18 for a period of three months.
In ESMA’s decision notice, it comments that EU Financial Markets have partially recovered since the early days of the COVID-19 outbreak; however, ESMA continues to monitor the situation (which remains unpredictable, particularly in the context of a possible second wave of COVID-19 infections). The renewal of the 0.1 percent reporting threshold is intended to sustain the capacity of EU regulators to manage threats to market integrity and the orderly functioning of markets and financial stability at an early stage, allowing them and ESMA to address such threats in case of signs of exacerbated market stress.
Subsequently, net short positions of 0.1 percent and above held until December 18 are to be disclosed to the relevant EU financial regulator(s), no later than 9:30 a.m. (ET) on December 19 (i.e., T+1).
The ESMA decision of June 11 is available here.
The ESMA decision of September 16 is available here.
The EFTA decision of September 17 is available here.
The ESMA Register of Exempted Shares under Short Selling Legal Framework is available here.