Regulatory Alerts2021-05-20
Opinion for the adjustment of the threshold set out in Article 5(2) of SSR
ESMA submits an opinion to the European Commission recommending a permanent reduction of the net short position notification threshold from 0.2% to 0.1% of issued share capital under the Short Selling Regulation. This adjustment is driven by the critical need for enhanced market surveillance visibility, as data from the COVID-19 pandemic demonstrated that positions between 0.1% and 0.2% constitute a significant portion of overall short positions and provide essential early warning indicators. ESMA concludes that the marginal compliance costs are negligible and that permanent adoption will better equip Competent Authorities to maintain financial stability and integrity in the face of ongoing market uncertainties and structural changes.
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