From November 1, 2012, EU Regulation 236/2012 on short selling and certain aspects of credit default swaps (the “SSR”) will come into force. The SSR will harmonize rules on short selling across the European Economic Area (“EEA”),and will affect all investment managers, including U.S. managers, engaged in short sales of shares primarily traded in Europe, or short sales of sovereign debt of European countries (including entering into credit default swaps in respect of such debt).

The final text of the SSR has been available since March. However, the text of an Implementing Standards Regulation - 827/2012 (“DISR”) and two Delegated Regulatory Standards Regulations – 918/2012 and 919/2012 (“DRSRs”), which supplement the SSR, have only recently been finalized. Moreover, the European Securities and Markets Authority (“ESMA”) has only published various lists (discussed below) and updated its Q&A on the SSR in the last month. As the final pieces of the short selling puzzle fall into place, we have set forth below some of the typical questions, particularly those asked by non-EEA asset managers, which we have encountered in the run-up to implementation of the SSR.

Please see full alert below for more information.