The European Securities and Markets Authority has published a Decision renewing the temporary lower threshold for disclosures of net short positions in shares. ESMA's original Decision has been in effect since March 16, 2020 and was due to expire on June 16, 2020. The Decision to renew the measures will apply from June 17, 2020 for a further three months. The lower thresholds apply to all holders of net short positions in shares traded on an EU regulated market (i.e., exchange) who must notify the relevant national regulator if the position reaches or exceeds 0.1% of the issued share capital and of each 0.1% above that threshold.

The requirement applies to natural or legal persons, regardless of where they are located. Exemptions apply for market making activities, shares admitted to trading on an exchange where the principal venue for the trading of the shares is located in a third country and a net short position in relation to the carrying out of a stabilization under the Market Abuse Regulation.

View ESMA's Decision.

You may like to see our client note, "EU Regulatory Response to COVID-19: ESMA Introduces Lower Short Position Reporting Threshold."

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