Short Selling
Regulation (EU) No 236/2012 on short selling and certain aspect of credit default swaps is applicable from 1 November 2012 (the Regulation).
To ensure the proper functioning of the internal market and to improve the conditions of its functioning, in particular with regard to the financial markets and to ensure a high level of consumer and investor protection, it is therefore appropriate to lay down a common regulatory framework with regard to the requirements and powers relating to short selling and credit default swaps.
- Regulation (EU) No 236/2012 on short selling and certain aspect of credit default swaps (.docx)
- Commission Delegated Regulation No 826/2012 (.docx)
- Commission Implementing Regulation No 827/2012 (.docx)
- ESMA Guidelines: Exemption for market making activities and primary market operations under Regulation (EU) 236/2012 of the European Parliament and the Council on short selling and certain aspects of Credit Default Swaps (.docx)
This Regulation aims to establish a uniform regime for the submission of notifications and information by investors to national competent authority in relation to the notification of the net short positions in shares, sovereign debt and uncovered positions in sovereign credit default swaps and to public disclosure of significant net short positions in shares. In relation to the notification of net short position uniform rules regarding the details of information that a natural or legal person shall submit are laid down by the Regulation.
The notification of the net short positions in shares, sovereign debt and uncovered positions in sovereign credit default swaps and to public disclosure of significant net short positions in shares shall be made using a form issued by Securities Market Agency (the Agency) in accordance with the Regulation.
The notification of the net short positions in shares, sovereign debt and uncovered positions in sovereign credit default swaps and cancellation of net short position in shares shall be submitted in written to Securities Market Agency, Poljanski nasip 6, 1000 Ljubljana, Slovenia and by fax no. + 386 1 280 04 30 or by e-mail info@atvp.si.
Details of the information on net short positions that shall be notified and disclosed:
List of fields for notification purpose, List of fields for public disclosure purpose
1. Notification of significant net short positions in shares
A natural or legal person who has a net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue shall notify the Agency, in accordance with Article 9, where the position reaches or falls below a relevant notification threshold. A relevant notification threshold is a percentage that equals 0,2 % of the issued share capital of the company concerned and each 0,1 % above that.
Form 1 (Format of notification form for net short positions)
2. Public discloser of significant net short positions in shares
A natural or legal person who has a net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue shall disclose details of that position to the public, in accordance with Article 9, where the position reaches or falls below a relevant publication threshold. A relevant publication threshold is a percentage that equals 0,5 % of the issued share capital of the company concerned and each 0,1 % above that.
Form 2 (Public disclosure of significant net short positions)
3. Notification of significant net short positions in sovereign debt
A natural or legal person who has a net short position relating to issued sovereign debt shall notify the Agency, in accordance with Article 9, where such a position reaches or falls below the relevant notification thresholds for the sovereign issuer concerned. The relevant notification thresholds shall consist of an initial amount and then additional incremental levels in relation to each sovereign issuer, as specified in the measures taken by the Commission. European Securities Market Authority (ESMA) shall publish on its website (www.esma.europa.eu) the notification thresholds for each Member State.
Form 3 (Net short position in sovereign debt)
4. Notification of uncovered positions in sovereign credit default swaps
Where a the Agency suspends restrictions in accordance with Article 14(2), a natural or legal person who has an uncovered position in a sovereign credit default swap shall notify the Agency where such a position reaches or falls below the relevant notification thresholds for the sovereign issuer. The relevant notification thresholds shall consist of an initial amount and then additional incremental levels in relation to each sovereign issuer, as specified in the measures taken by the Commission. European Securities Market Authority (ESMA) shall publish on its website (www.esma.europa.eu) the notification thresholds for each Member State.
Form 4 (Position in uncovered sovereign credit default swaps)
5. A cancellation of notification
A natural or legal person who has submitted a notification which contains an error or became aware of an error shall send a cancellation to the Agency.
Form 5 (Cancelled net short position in shares, Cancelled net short position in sovereign debt, Cancelled position in uncovered sovereign credit default swaps)
The relevant time for calculation of a net short position shall be at midnight at the end of the trading day on which the natural or legal person holds the relevant position. That time shall apply to all transactions irrespective of the means of trading used, including transactions executed through manual or automated trading, and irrespective of whether the transactions have taken place during normal trading hours. The notification or disclosure shall be made not later than at 15.30 on the following trading day.
The public disclosure of information set out in Article 6 shall be made in a manner ensuring fast access to information on non-discriminatory basis. That information shall be posted on central website operated by the Agency (www-a-tvp.si). The Agency communicates the address of the website to ESMA, which, in turn, shall put the link on its own website.