On October 10, ESMA published a first update to its Questions and Answers on the implementation of the Regulation on short selling and certain aspects of credit default swaps (the Short Selling Regulation). ESMA’s Questions and Answers provides responses to questions posed by market participants and regulatory authorities, with the aim of promoting the consistent application of the Short Selling Regulation throughout Europe. The Questions and Answers have been updated in respect of questions related to:

• the transparency of net short positions;
• calculating the net short position;
• uncovered short sales;
• the duration adjustment for calculating net short positions in sovereign debt;
• net short positions when different entities in a group have long or short positions or for fund management activities; and
• exemption for market making activities and for primary dealers operations.