ESMA updates Q&A on short selling 14 November 2018Paris Reporter: Maddie Saghir
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The European Securities and Markets Authority (ESMA) has updated its Q&As on the short selling regulation (SSR).
The Q&A clarifies that the identification of the relevant competent authority, following the entry into application of the second market in financial instruments directive (MiFID II) and markets in financial instruments (MiFIR), is no longer made under commission regulation no 1287/2006.
It will now be made under commission delegated regulation (EU) 2017/590 for the reporting of transactions to competent authorities.
In the updated version, it is stated: “With the application of MiFID II / MiFIR regime, whereas the formal reference in SSR to Commission Regulation 1287/2006 has not changed, Article 25(3) of MiFID I has been substituted by Article 26 (1) and (2) of MiFIR, supplemented by commission delegated regulation (EU) 2017/590.”
“Therefore, the reference to commission regulation 1287/2006 has to be read as referring to commission delegated regulation (EU) 2017/590 for the reporting of transactions to competent authorities.”
According to ESMA, the purpose of this Q&A is to promote common supervisory approaches and practices in the application of SSR.
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