Regulatory Alerts2020-04-01
Decision of the European Securities and Markets Authority of 16 March 2020 on the temporary lowering of the notification threshold for net short positions in shares admitted to trading on a regulated market
The European Securities and Markets Authority (ESMA) issued this Decision on 16 March 2020 to temporarily lower the net short position notification threshold from 0.2% to 0.1% of issued share capital for shares traded on EU regulated markets. This measure was adopted in response to the severe market volatility and downward price spirals caused by the COVID-19 pandemic, which posed a significant threat to market integrity and financial stability. The Decision requires market participants to notify national competent authorities immediately upon reaching or falling below the new 0.1% threshold, ensuring enhanced transparency and monitoring capabilities for a period of three months.
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