On May 20, the European Securities and Markets Authority (ESMA) proposed to the European Commission (Commission) a permanent reduction to the threshold to notify net short positions on shares to EU national competent authorities (NCAs) from 0.2 percent to 0.1 percent.
Continue Reading ESMA Recommends Permanently Lowering the Reporting Threshold for Net Short Positions to 0.1 Percent

On December 15, the UK’s HM Treasury announced its intention to enact a statutory instrument under the UK’s retained version of the Short Selling Regulation (SSR), amending the initial notification threshold for the reporting of certain net short positions to the Financial Conduct Authority (FCA) (the Guidance).
Continue Reading HM Treasury Changes Notification Threshold Under UK Short Selling Regulation

On July 30, the European Securities and Markets Authority (ESMA) published its decision in the Official Journal of the EU to extend the reporting requirement for holders of 0.1 percent net short positions in EU shares until September 17, 2020 (the Decision).
Continue Reading ESMA Confirms Extension of 0.1 Percent Net Short Position Reporting in EU Shares Until September 17

On May 27, the UK’s Financial Conduct Authority (FCA) published issue 63 of its Market Watch newsletter in relation to market conduct and transaction reporting issues (the Newsletter).

In the Newsletter, the FCA sets out its expectations around the identification and handling of inside information in light of increased capital raisings and working from home arrangements as a result of the COVID-19 pandemic. The FCA notes that market participants should continue to comply with their obligations under the relevant regulations, including the Market Abuse Regulation. In particular, market participants should:
Continue Reading FCA Publishes Market Watch Newsletter

On May 18, the European Securities and Markets Authority (ESMA) published a statement regarding the non-renewal and termination of the short selling bans imposed by certain EU financial regulators (the Statement).

As a result of the impact of the COVID-19 pandemic on EU financial markets, the Austrian Finanzmarktaufsicht (FMA), the Belgian Financial Securities and Markets Authority (FSMA), the French Autorité des Marchés Financiers (AMF), the Greek Hellenic Capital Market Commission (HCMC), the Spanish Comisión Nacional del Mercado de Valores (CNMV) and the Italian Commissione Nazionale per le Società e la Borsa (CONSOB) introduced bans on short selling from the middle of March 2020.
Continue Reading ESMA Publishes Statement on the End of Short Selling Bans by Certain EU Financial Regulators

To help market participants keep tabs on the deluge of actions taken by financial market regulators to address the ongoing COVID-19 crisis, Katten’s Financial Markets Regulation team has launched the Financial Markets Regulation COVID-19 Resource Center. The new site lists and provides links to the COVID-19-related regulatory actions taken by the SEC, CFTC, FINRA,

On March 17, the UK Financial Conduct Authority (FCA) published a statement on short selling bans and reporting (the Statement).

The Statement explains that, under the Short Selling Regulation (SSR), EU regulators and the FCA have the power to apply short- or long-term bans on short sales in shares and certain other financial instruments.
Continue Reading FCA Statement on Short Selling Bans and Reporting

On March 16, the European Securities and Markets Authority (ESMA) issued a decision to temporarily require the holders of net short positions in shares traded on an EU regulated market to notify the relevant EU financial regulator if the position is equal to or greater than 0.1 percent of the issued share capital (the Decision). This applies to all positions entered into after the entry into force of the Decision.
Continue Reading ESMA Publishes a Decision on Short Selling in Light of COVID-19

On February 24, the UK’s Financial Conduct Authority (FCA) announced a change to the process firms should use to report short positions in UK-listed financial instruments under the Short Selling Regulation 2012 (SSR). The change was announced on an updated webpage, available here.
Continue Reading FCA Changes Short Selling Reporting Process

On December 7, the Short Selling (Amendment) (EU Exit) Regulations 2018 (UK Regulations) were published, together with an explanatory memorandum. A draft version of the UK Regulations was published on October 10.

The UK Regulations ensure that the regime established in the United Kingdom under the EU Short Selling Regulation (SSR) will continue to operate effectively after its withdrawal from the European Union on March 29, 2019 (Exit Day).
Continue Reading Short Selling (Amendment) (EU Exit) Regulations 2018 Made in Preparation of Brexit